The transition from Gary Gensler to Paul Atkins has resulted in a marked decrease in the number of enforcement cases conducted by the US Securities and Exchange Commission (SEC), particularly impacting crypto firms. A recently published report by Cornerstone Research indicates that, during the stewardship of SEC Chair Paul Atkins, enforcement actions against public companies and their subsidiaries saw a reduction of approximately 30% in fiscal year 2025, as compared to fiscal year 2024.
The researchers noted that these findings align with past trends observed during previous changes in SEC leadership, particularly with former Chair Gary Gensler.
SEC Enforcement Actions from FY 2016 to FY 2025
Source: Cornerstone
Following Gensler’s exit, there was a noticeable slowdown in investigations and lawsuits involving several crypto entities, with the report specifically citing the SEC’s case against Coinbase, which was dismissed in February.
Earlier this week, the SEC’s Division of Examinations shared its examination priorities for the fiscal year 2026, notably omitting discussions on cryptocurrencies and digital assets.
“The dismissal mirrors the current SEC administration’s clearly articulated priorities,” stated Cornerstone in their report. Chair Atkins has indicated that a primary focus of his administration will be “to establish a solid regulatory framework for digital assets through a logical and principled methodology.”
The SEC functioned with limited staffing for 43 days during a recent government shutdown, affecting its enforcement and oversight activities. Following the resumption of standard operations, the agency published its examination priorities for 2026 and continued the review process for initial public offerings, exchange-traded funds, and other regulatory matters.
Awaiting Legislative Developments in Congress
As of this Tuesday, Republican leaders within the Senate Banking Committee expressed their intentions to pass a comprehensive digital asset market structure bill by early 2026. The initial plan to have the legislation signed into law before the year’s end was postponed due to the government shutdown and opposing viewpoints from Senate Democrats regarding DeFi provisions.
If enacted, this legislation could empower the Commodity Futures Trading Commission with considerable authority to oversee digital assets. Chair Atkins remarked that under the SEC’s possible authority, it would not adopt a lax stance on enforcement, likely including cases pertaining to cryptocurrencies.
Read more about developments in crypto class actions anticipated to double in 2025.
