The First Two Months of the SEC Under President Trump

As President Donald J. Trump wraps up his first two months in office, we review the changes that have taken place at the SEC.

New Leadership

Prior to taking office, President Trump announced his intent to appoint Paul Atkins to replace Gary Gensler (a Biden appointee) as Chairman of the SEC.[1] Gensler stepped down on January 20, 2025 and President Trump named Mark T. Uyeda Acting Chair pending Atkins’s confirmation.[2] Atkins, a well-respected former SEC Commissioner, has not been yet been confirmed. Atkin’s confirmation hearing is currently slated for March 27, 2025.[3] For the time being, the SEC has three Commissioners: Acting Chairman Uyeda, Commissioner Hester M. Peirce, and Commissioner Caroline A. Crenshaw. With Gensler’s departure, Ms. Crenshaw is now the only Democratic Commissioner.

Curtailment of Enforcement Division Authority

On February 18, 2025, President Trump issued an Executive Order entitled “Ensuring Accountability for All Agencies,” in which he decried regulatory authorities’ independence and declared that the executive branch’s policy would be to “ensure Presidential supervision and control of the entire executive branch.”[4]

One of the most significant recent developments in SEC enforcement was the removal of delegated authority to issue formal orders of investigation. A formal order of investigation is a necessary prerequisite for SEC enforcement staff to issue document and testimony subpoenas. Without a subpoena, it is difficult for the SEC staff to compel the production of documents or testimony. Since 2009, the Commission—which consists of Presidential appointees—has delegated its authority to issue formal orders of investigation to the Director of the Division of Enforcement. On March 10, 2025, the SEC issued a Rule revoking the authority of the Director of the Division of Enforcement to issue formal orders of investigation.[5] Going forward, formal orders of investigation must be issued by the Commission to ensure that “the Commission’s use of its investigative resources [closely aligns] with Commission priorities.” This change will make it more time-consuming and difficult to issue subpoenas and will allow for closer political oversight of investigations.

Shift Away from Crypto Enforcement

As part of his presidential campaign, President Trump advocated for the looser regulation of crypto assets. The day after President Trump assumed office, Acting Chair Uyeda launched a new Crypto Task Force, to be headed by Commissioner Peirce, aimed at developing a clear and comprehensive regulatory framework for crypto assets.[6] The agency characterized its historical approach to crypto as one that “relied primarily on enforcement actions to regulate crypto retroactively and reactively,” which it said led to “confusion” and was “hostile to innovation” and “conducive to fraud.” Consistent with its new approach, on February 20, 2025, the SEC announced that it would replace the Enforcement Division’s Crypto Assets and Cyber Unit with a Cyber and Emerging Technologies Unit (CETU).[7] As reflected in its name, CETU will move away from crypto enforcement actions and instead focus on fraud facilitated by emerging technologies, such as artificial intelligence.

The SEC has taken several actions purportedly consistent with its new crypto priorities. On February 27, 2025, the SEC announced that it had agreed to dismiss its ongoing enforcement action against Coinbase “[g]iven the pending work of the Crypto Task Force.”[8] Coinbase is the largest U.S. crypto company and the SEC’s lawsuit was premised on its position that currencies sold on Coinbase’s platform constituted unregistered securities.[9] Similarly, on March 19, 2025, the CEO of Ripple announced that the SEC was planning to drop its appeal in a lawsuit against Ripple.[10] The district court had found that Ripple’s sale of crypto tokens did not violate federal securities laws. Likewise, the SEC has also put a halt to several ongoing crypto investigations.[11]

In addition to dropping its existing crypto-related actions, the SEC has begun releasing more favorable crypto guidance. On February 27, 2025, the SEC released a non-binding Staff Statement finding that so-called “meme coin” transactions do not implicate federal securities laws, a shift away from the regulatory reasoning of the prior administration.[12]

Rollback of Biden-Era Guidance

Abandonment of the Climate-Related Disclosure Rule

On March 6, 2024, the SEC adopted rules (the “Climate Disclosure Rule”) requiring public companies and entities involved in public offerings to make certain climate-related disclosures.[13] The SEC voluntarily delayed implementation of the Climate Disclosure Rule while it litigated various legal challenges in the Eighth Circuit.[14] On February 11, 2025, Acting Chairman Uyeda directed Commission staff to request that the Court overseeing the litigation not schedule the case for argument so that the SEC could “deliberate and determine the appropriate next steps” in the litigation.[15] Uyeda noted that two of the three Commissioners had voted against the Rule’s adoption and that he questioned the statutory authority of the Rule.

Revised Shareholder Proposal Guidance

On November 3, 2021, the SEC issued guidance in Staff Legal Bulletin No. 14L addressing when a company must include shareholder’s proposals in its proxy statement under Rule 14-a-8. On February 12, 2025, the SEC rescinded that guidance and replaced it with Staff Legal Bulletin No. 14M. Under SLB 14M, it is now easier for companies to exclude shareholder proposals from issuers’ proxy statements.[16]

Self-Certification of Accredited Investor Status

Rule 506(c) of Regulation D allows an issuer to raise capital via advertising to potential investors without registering with the SEC.[17] Under Rule 506(c), issuers may only raise capital from accredited investors, and issuers must take “reasonable steps” to verify the accredited status of an investor. On March 12, 2025, in respond to a letter from Latham & Watkins, the Office of Small Business Policy, Division of Corporation Finance issued a no-action letter providing guidance on what might constitute “reasonable steps.”[18] In the no-action letter, the SEC stated that a “high minimum investment amount” is a relevant factor in verifying accredited investor status and concluded that a self-certification of accredited investor status, along with a minimum investment of $200,000 could allow an issuer to “reasonably conclude” that an investor was accredited. Although the no-action letter is not binding, it provides reassurance to issuers looking to advertise to potential investors without going through the burdensome process of verifying investor status.

Continuation of Non-Crypto Enforcement Actions

Although the SEC has backed off its crypto enforcement actions, it continues to pursue traditional enforcement actions against bad actors. Since President Trump took office, the SEC has taken enforcement actions against over one hundred individuals and entities.[19] For example, on March 18, 2022, the SEC charged a Florida trucking company and its insiders with fraudulently raising $5.4 million through an unregistered securities offering, premised on false promises, and misappropriating the funds.[20] On March 18, 2025, the SEC announced charges against an investment adviser and his firm for investing more than 25 percent of a fund’s assets in a single company over multiple years and making misrepresentations about the investment.[21] And, on March 14, 2025, the SEC charged the Chief Financial Officer of a public company with lying to the company’s auditor and falsifying accounting records.[22]

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The SEC has taken significant actions in the first two months of President Trump’s term. However, unlike other enforcement agencies, such as the Department of Justice, which have seen dramatic new shifts in priorities, the SEC’s changes are largely consistent with a return to the priorities and guidance of prior Republican administrations. While the SEC has shifted toward a looser regulator approach, it continues to bring enforcement actions against bad actors and evaluate how it can protect investors.