Litigation & Enforcement Attorneys Discuss Securities Enforcement Landscape in 2025

Litigation & enforcement partners Lisa Bebchick and Helen Gugel, counsel Amish Shah, and associate Dominique Rioux authored an article for New York Law Journal discussing the anticipated securities enforcement landscape in 2025 under the new SEC leadership. Their predictions include:

• Diminished Crypto Enforcement: A likely reduction in crypto-related enforcement actions, though the SEC will continue to focus on fraud and investor harm within the crypto space.
• AI and ESG Enforcement: Continued enforcement against false or misleading AI-related statements and potential anti-ESG enforcement actions reflecting the new administration's policy priorities.
• Traditional Enforcement Focus: A shift back to traditional SEC enforcement priorities, such as financial fraud, insider trading, and the Foreign Corrupt Practices Act (FCPA), with less emphasis on novel legal theories.
• Reduction in Technical Violations: A decline in enforcement actions for technical rule violations without intentional wrongdoing or specific harm, such as off-channel communications and minor reporting delays.
• Procedural Changes: Potential changes in enforcement procedures, including more engagement in the Wells process and senior-level involvement in settlements.
• Staffing Uncertainty: Possible impacts on SEC staffing due to turnover and hiring freezes, potentially affecting the agency's enforcement capabilities.