SEC to Focus on Traditional Cases Under New Leadership, Acting Director Says

The U.S. Securities and Exchange Commission will likely focus on more traditional cases under incoming leadership, including those involving individual wrongdoing and fraud targeting elders, the agency's acting enforcement director said on Monday.

The SEC has pioneered novel enforcement theories in recent years, such as a 2021 "shadow trading" case, which it won. But it is in the midst of a major pivot and staff exodus since Republicans took the helm at the agency in January.

"Creativity is probably not where we want to be," Sam Waldon, the agency's interim enforcement director, told a securities industry event, when asked about such recent enforcement theories.

Instead, Waldon said he expected the agency to pursue perennial areas of enforcement, including insider trading and accounting and disclosure fraud along with cases involving emerging technologies and retail investor fraud.

He also said cases aimed at individual accountability will be a priority.

"It's always a priority, but I do think that those are cases that are going to be received better by this commission," he said.