SEC narrows enforcement focus

The Securities and Exchange Commission just told Wall Street, in unusually direct language, that fewer cases can still mean tougher policing. In its April 7, 2026 fiscal year 2025 results, the agency said past resources had been used to “run up numbers” and said it is now judging enforcement by investor protection and congressional intent instead of raw case totals. (sec.gov) The number dropped sharply. The Securities and Exchange Commission said it filed 583 total enforcement actions in fiscal year 2025, down from 749 in fiscal year 2024, while standalone cases fell to 434 from 583. (sec.gov) The money did not disappear with the case count. The agency said it obtained $8.2 billion in financial remedies in fiscal year 2025, including $6.1 billion in disgorgement and prejudgment interest and $2.1 billion in civil penalties. (sec.gov) That mix tells you what changed: fewer swings, aimed at bigger targets. The Securities and Exchange Commission highlighted cases involving investment advisers, broker-dealers, crypto asset fraud, insider trading, offering fraud, and municipal bond misconduct, instead of presenting volume itself as the headline. (sec.gov; natlawreview.com) The rulebook for investigators changed too. On March 24, 2026, the Division of Enforcement announced a revised Enforcement Manual that says the updates are meant to improve fairness, transparency, and efficiency in investigations. (sec.gov) One of the biggest changes is who gets to formally launch an investigation. A recent analysis of the 2026 manual says staff now need Commission approval for formal orders of investigation, which is a higher-level checkpoint before subpoena power is used. (mondaq.com) Another change comes later, when the agency is deciding whether to charge someone. The revised manual says staff should be more forthcoming with Wells notice recipients about the most important evidence in the file and should make reasonable efforts to let them review relevant portions before the Commission votes on charges. (mondaq.com; sec.gov) At the same time, the Securities and Exchange Commission is trying to stop one long-running complaint from firms that answer to two Washington regulators at once. A Simpson Thacher summary published April 9, 2026 said the Securities and Exchange Commission and the Commodity Futures Trading Commission signed a memorandum of understanding to coordinate on lawful innovation, market integrity, and investor and customer protection. (stblaw.com) The Commodity Futures Trading Commission describes that project even more plainly. Its harmonization page says the two agencies are trying to reduce duplicative regulation, coordinate seamlessly, and give markets more clarity where their jurisdictions overlap. (cftc.gov) Put together, the picture is less “catch everything” and more “pick the cases that matter, and make the process easier to defend against.” That is a meaningful shift for crypto firms, advisers, exchanges, and trading shops that spent the last few years bracing for broad regulation through lawsuits instead of narrower priorities and more formal internal checks. (sec.gov; natlawreview.com; stblaw.com)