SEC Chairman Paul Atkins Sworn In and Expected to Shift Enforcement Priorities
Paul Atkins, recently sworn in as Chairman of the SEC, assumes leadership of a reorganized commission following several departures linked to DOGE. Experts anticipate significant changes in the rule-making agenda, although Atkins is known for his firm approach to enforcement actions.
The last three of four general counsels from the SEC forecast that enforcement priorities will change but will remain steadfast under Atkins. Having served as a commissioner from 2002 to 2008, Atkins is familiar with the SEC and is recognized for his interest in cryptocurrency, previously owning up to $6 million in crypto-related assets. Although predictions suggested a more lenient SEC approach due to former President Trump’s business-friendly policies, enforcement is expected to continue robustly, according to Melissa Hodgman, a former senior officer in the SEC’s Division of Enforcement.
Hodgman indicated that Atkins’ enforcement focus will likely include fraud, particularly in accounting, disclosure, and insider trading. Speaking at the Berkeley Spring Forum on M&A and the boardroom, she emphasized that regulators have become highly proficient in detecting insider trading through social media and AI.
Currently, a partner at law firm Freshfields, Hodgman urged legal professionals to scrutinize executive securities transactions involving material non-public information. She noted the advanced data analytics now used by the enforcement division.
Three former SEC general counsels, speaking on a panel moderated by Hodgman, agreed that rule violation priorities might shift. Robert Stebbins, general counsel from 2017 to 2021, predicts a return to the "Main Street" investor focus seen under Chairman Jay Clayton. There is also a noted pause on enforcing the Foreign Corrupt Practices Act, deemed a hindrance to U.S. economic competitiveness by a previous Trump administration order.
Dan Berkovitz, general counsel under former Chairman Gary Gensler, expects a greater focus on cases involving investor harm over procedural infractions. Megan Barbaro, Gensler’s general counsel from 2023 to 2025, anticipates lower corporate penalties due to concerns that fines indirectly harm shareholders.
In 2024, the SEC executed 583 enforcement actions, collecting over $8 billion in fines, marking the highest amount in agency history despite a 26% case decline. Former Chair Gensler faced criticism for his wide-ranging rule-making and cryptocurrency policies.
All three former chief lawyers expect Atkins to address cryptocurrency regulation, despite its complexity. Recently, Atkins spoke at the SEC’s Crypto Task Force roundtable, acknowledging Commissioner Hester Peirce, known as “CryptoMom.”
The agency is likely to consider formal actions on environmental disclosures. In March 2024, the SEC implemented rules for public companies to disclose direct and indirect greenhouse gas emissions, which faced legal challenges. After President Trump’s 2024 election, the SEC decided not to defend these climate-risk disclosure rules in court.
Berkovitch foresees a regulatory focus on expanding access to private markets and increasing the accredited investor threshold, last revised in 2020 to include more investors in private equity and related fields.
This report was originally published on Fortune.com.
