The U.S. Securities and Exchange Commission is scrapping its experimental playbook in favor of something much more familiar: classic enforcement. Under its new leadership, the agency is steering away from cutting-edge legal theories and back toward the kind of cases that built its name—think insider trading, deceptive accounting, and schemes preying on vulnerable investors.
“We’re not chasing novelty,” said acting enforcement chief Sam Waldon at a recent industry gathering. “Creativity is probably not where we want to be.”
After years of headline-grabbing cases like the 2021 “shadow trading” win—where the SEC ventured into legally gray territory to clamp down on indirect insider trading—the agency is now returning to its roots. Individual accountability, fraud targeting seniors, and retail investor protection are set to take center stage. Waldon hinted that such moves would likely find more support from the current commission makeup.
This recalibration follows a noticeable shake-up since January, when a Republican-led leadership team took over and triggered a wave of senior staff departures. Paul Atkins, a former Trump-era appointee, is now the face of the agency and is expected to outline the SEC’s new tone when he appears before Congress on Thursday.
One of the early signs of this shift? The agency’s recent hands-off approach to cryptocurrency enforcement. Several high-profile cases have been quietly paused or dropped altogether. Internal guardrails have also been tightened—enforcement teams can no longer launch formal investigations without first getting the commission’s blessing.
When asked whether this change might handcuff the agency, Waldon was measured. “It’s too early to tell,” he said. “There are a lot of ways to structure the process so that the commission can still green-light cases.”
For now, the message is clear: the SEC isn’t chasing the next big legal innovation. It’s tightening its focus, lowering its profile, and doubling down on familiar ground.
