SEC Speaks in 2025 Recap

In case you missed it, the U.S. Securities and Exchange Commission (SEC) held its annual SEC Speaks program in Washington, DC on May 19 and 20, 2025. The conference featured commentary from Chairman Paul Atkins, Commissioners and senior SEC personnel on the state of the agency. Here below we reflect on key takeaways.

Some of the SEC’s current priorities:

• Focusing on innovation, fairness and transparency in its approach to regulation, oversight, and enforcement.
• Shifting from enforcement-driven actions to formal rulemaking in capital markets, particularly in the cryptocurrency space.
• Evaluating the extent to which organizations consider cybersecurity risk in the effective design and implementation of their compliance programs.
• Supporting the Financial Action Task Force (FATF) in its evaluation of the United States’ measures in place to combat money laundering and terrorist financing.
• Enforcing penalties for frauds that involve vulnerable populations, foreign bad actors, emerging technology, and deceptive market practices, with heightened attention on harm to retail investors and individual liability.

Embracing Innovation and Transparent Dialogue

SEC Chairman Paul Atkins set the tone of the program with his discussion on the SEC’s renewed approach to innovation, cryptocurrency regulation, and capital market oversight. Atkins emphasized that the agency should not fear innovation but instead embrace and champion it. As part of this effort, he directed the SEC's Division of Corporation Finance to maintain transparent interactions with the public and instructed commission staff across policy divisions to begin drafting rule proposals related to cryptocurrency. Regulatory engagement and stakeholder input emerged as a central theme, with the SEC emphasizing two-way dialogue and increased transparency. The agency has hosted public roundtables, issued requests for public comment, received over 100 written submissions, and conducted meetings with companies and market participants to gather feedback. SEC staff highlighted their responsiveness to inquiries and the importance of submitting targeted, written questions to facilitate effective guidance.

SEC’s Evolving Approach to Cryptocurrency Regulation

The agency acknowledged that cryptocurrency markets have long been in "regulatory limbo", and it signaled a shift from enforcement-driven actions toward formal rulemaking. The newly established Crypto Task Force, launched in January 2025, is leading efforts to clarify when and how crypto assets are treated as securities and is organizing industry roundtables to support that work. More broadly, the session reflected the SEC’s ongoing course correction to refocus on its core mission of regulating capital markets rather than pursuing broader social or political objectives. However, some participants raised concerns that scaling back enforcement, particularly in anticipation of more crypto-friendly rules, could undermine investor protections and erode longstanding regulatory safeguards.

Cybersecurity as a Component of Compliance Programs

SEC leaders from the Division of Examinations commented on the importance of integrating a cybersecurity component into their compliance programs. The agency provided insight into the areas it evaluates when conducting firm reviews, such as governance and risk management, access rights and controls, data loss prevention, mobile security, incident response and resilience, vendor management, as well as training and awareness, as these are areas where the Division of Examinations has historically noted weaknesses. The SEC emphasized that governance and risk management programs should include a risk assessment to identify, analyze, and prioritize cybersecurity risks to the organization. Further, compliance programs should incorporate policies and procedures that are reasonably designed to address a company’s cybersecurity risk, and the organization should ensure that these policies and procedures are effectively implemented throughout the organization.

Anti-Money Laundering Considerations

Remarks from John Fahey, Associate Director within the Division of Trading and Markets, highlighted the important work done by the FATF, which serves as the global standard-setting body for anti-money laundering and counter-terrorism financing efforts. The FATF publishes what are known as the black and gray lists, which identify jurisdictions with weak measures to combat money laundering and terrorist financing. The FATF is currently conducting the mutual evaluation for the United States, which is expected to conclude in 2026. This evaluation consists of two main components: (1) technical compliance, which assesses whether the necessary laws are in place, and (2) the effectiveness of the implementation of those laws. Although this review is largely led by the U.S. Department of Treasury, the SEC plans to be involved in the discussions relevant to the securities industry. Fahey also reminded the audience that the Division of Trading and Markets has published a staff bulletin highlighting the risks of fraud, money laundering, and unregulated securities offerings associated with transactions of low-priced securities through omnibus accounts, particularly through accounts maintained for foreign financial institutions. This guidance, although published in 2020, is according to Fahey, “something that’s worth keeping an eye on.”

The SEC’s Regulatory Enforcement Priorities

Acting Director Sam Waldon and the deputy directors within the SEC’s Division of Enforcement underscored the agency’s continued commitment to core enforcement priorities including insider trading, financial disclosure fraud, offering fraud, market manipulation, and fiduciary breaches by investment advisors. The enforcement focus areas for the Commission and its specialized units over the next few years include fraud against vulnerable populations (i.e., low-income, elderly, etc.), fraud involving foreign bad actors (e.g., relationship investment scams, etc.), the use of emerging technology (i.e., AI, cyber security compliance, etc.), and deceptive market practices. While the SEC does not anticipate dramatic shifts in its enforcement agenda, it signaled a renewed focus on individual accountability and retail investor protection in these areas.

The Division also communicated changes to enhance fairness and transparency in its proceedings. Deputy Director Antonia Apps spoke on updates to the Wells process to grant defense counsel an opportunity to engage with Division leadership following an investigation if requested. The SEC expects to issue more public declinations and decisions not to pursue where self-reporting and remediation is already present to reduce harm to investors from corporate penalties. Sam Waldon also commented on the SEC’s support for re-entry into the securities industry for previously barred individuals who demonstrate that their application for re-entry is not adverse to the public interest.

The agency discussed structural updates, including a reorganization of the Enforcement Division to streamline leadership and improve consistency of efforts nationally. The SEC also conveyed its focus on collaboration with other regulators and law enforcement through initiatives like the Interagency Securities Council to share insights on the latest fraud trends and investigative tools amongst the federal, state and local regulatory and law enforcement community. As was the key theme throughout the entirety of the program, the commentary from the Division of Enforcement reflected the SEC’s intent to be agile, transparent, and responsive.