The U.S. Securities and Exchange Commission (SEC) is making waves across Wall Street and the corporate world with a series of bold moves that are reshaping the regulatory landscape as 2025 draws to a close. From a dramatic drop in enforcement actions to a hands-off approach on shareholder proposals and a renewed focus on digital assets, the SEC’s latest actions are sparking debate and uncertainty in boardrooms and trading floors alike.
Enforcement Actions Plummet: What’s Behind the 30% Drop?
In a development that has stunned many legal and financial observers, the SEC brought
30% fewer enforcement actions against public companies and their subsidiaries in fiscal year 2025 compared to the previous year. This marks one of the steepest declines in recent memory and has left many wondering whether the agency is recalibrating its approach or simply overwhelmed by the complexity of today’s markets.
Legal experts point to several possible factors:
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Resource constraints as the SEC juggles emerging issues like crypto and AI-driven trading
- A strategic shift toward “high-impact” cases rather than a high volume of smaller actions
- The chilling effect of ongoing litigation and political scrutiny over the agency’s enforcement priorities
Whatever the cause, the drop is sending a clear signal:
the SEC’s enforcement playbook is changing—and companies are taking notice.
SEC Steps Back from Shareholder Proposal Disputes
In a move that has left public companies and investors in “uncharted territory,” the SEC recently announced it will
step back from responding to most shareholder proposal no-action requests. Traditionally, companies could ask the SEC for a “no-action” letter to exclude certain shareholder proposals from proxy materials, relying on the agency’s guidance as a shield against litigation.
Now, the SEC is telling companies:
“You’re on your own.” This policy shift, effective for the current proxy season and retroactive to October 1, 2025, means companies must navigate these disputes without the SEC’s backing, potentially leading to more lawsuits and uncertainty at annual meetings.
Corporate governance experts warn this could:
- Increase legal costs for companies
- Empower activist investors
- Lead to inconsistent outcomes as courts, not the SEC, become the final arbiters
“Project Crypto”: SEC Doubles Down on Digital Asset Oversight
As the digital finance revolution accelerates, the SEC is not sitting on the sidelines. Chairman Paul Atkins recently outlined the next phase of “
Project Crypto,” the agency’s initiative to apply federal securities laws to crypto assets and related transactions.
Key highlights from the Chairman’s remarks:
- The SEC will focus on
basic fairness and common sense in regulating digital assets
- New guidance is expected on the
tokenization of equity securities- The agency is inviting public comment and industry input as it crafts new rules for this rapidly evolving sector
This comes as the SEC prepares for a high-profile
Investor Advisory Committee meeting on December 4, where regulatory changes in corporate governance and the tokenization of equity securities will be front and center.
Financial Surveillance and Privacy: Roundtable Rescheduled
In another sign of the SEC’s busy agenda, the agency has announced a
new date for its roundtable on financial surveillance and privacy. The event, now set for later this year, will bring together regulators, industry leaders, and privacy advocates to debate how best to balance market transparency with individual rights in an era of big data and AI-driven analytics.
What This Means for Investors and Companies
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Public companies face more legal uncertainty around shareholder proposals and must be prepared for increased litigation risk.
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Investors should watch for new rules and guidance on digital assets, which could reshape the crypto and tokenized securities markets.
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Market participants should expect the SEC’s enforcement focus to continue evolving, with fewer but potentially more impactful cases.
The Bottom Line
The SEC is rewriting the rules of engagement for America’s capital markets. Whether these changes will lead to greater innovation, more litigation, or a new era of regulatory clarity remains to be seen—but one thing is clear:
the status quo is over.
Sources
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6. Webmaster Frequently Asked Questions - SEC.gov
7. SEC Enforcement Actions Against Public Companies and Subsidiaries Drop by 30% in FY 2025
8. Databases | Berkeley Law Library
9. Breaking Down “Project Crypto”: SEC Chairman Atkins Outlines Next Phase of Digital Asset Oversight
10. How to use SEC filings to cover companies
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