SEC Tightens Control Over Crypto Investigations in Policy Shift

The SEC has introduced a new policy requiring high-level approval before launching formal investigations, a shift that could slow enforcement actions.

Previously, agency staff had the authority to initiate probes independently, but now politically appointed leadership must sign off before subpoenas can be issued.

This change follows Donald Trump’s return to office, with the SEC currently led by acting chair Mark Uyeda alongside commissioners Hester Peirce and Caroline Crenshaw. Once former commissioner Paul Atkins is confirmed, he is expected to take over as chair.

The decision has drawn mixed reactions. Some argue that stricter oversight will prevent unwarranted investigations, while critics warn it weakens the SEC’s ability to act swiftly against misconduct. The agency has declined to comment on whether the change was officially voted on or who authorized it.

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Under previous administrations, enforcement powers varied—Trump’s first term required dual approvals for investigations, while Biden’s SEC allowed lower-level attorneys to proceed more freely. The latest policy grants commissioners greater control over enforcement, potentially signaling a more business-friendly regulatory approach.

Alexander Stefanov