25-2-2025 – The US Securities and Exchange Commission (SEC) is poised to abolish regional director positions across its ten regional offices, according to Reuters reporting. The dramatic organisational change forms part of a comprehensive cost-cutting strategy championed by President Donald Trump’s administration.
Regional directors were reportedly informed of their impending redundancies on 21st February, with the regulatory body scheduled to formally submit its restructuring blueprint next month. Though the regional offices themselves will continue operations, this development represents a fundamental shift in the SEC’s management structure.
The efficiency drive aligns with President Trump’s broader governmental downsizing ambitions, significantly influenced by special advisor and billionaire entrepreneur Elon Musk. Through the newly established Department of Government Efficiency (DOGE), which Musk himself helms, the administration has been methodically identifying potential avenues for governmental streamlining.
DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the Securities and Exchange Commission.
— DOGE SEC (@DOGE_SEC) February 17, 2025
DOGE-affiliated accounts on Musk’s social media platform X have actively solicited public input regarding SEC inefficiencies. On 18th February, a DOGE-related X account specifically targeting the SEC encouraged users to report instances of waste and fraud, reflecting the administration’s novel approach of outsourcing governmental efficiency auditing to public and private sectors.
The SEC faces imminent deadlines, with restructuring plans due for submission to Acting Chairman Uyeda by 25th February. This follows the agency’s closure of its Salt Lake City regional hub in June 2024, which came after a high-profile defeat in the DEBT Box case that resulted in a $1.8 million fine for bad faith conduct.
Perhaps most notably, the SEC’s regulatory approach has undergone a substantial transformation under the new leadership. The aggressive stance towards cryptocurrency enforcement that characterised former Chairman Gary Gensler’s tenure has been significantly moderated, with the agency scaling back crypto-related investigations and reassigning key personnel.
Several high-profile lawsuits against major crypto industry players, including Coinbase, Robinhood, and Opensea, have been paused, whilst the agency’s former top crypto litigator has reportedly been reassigned to the IT department. Simultaneously, the SEC has established a Cyber and Emerging Technologies Unit (CETU) focused on combating cyber-related misconduct and protecting retail investors in the cryptocurrency sector.
Acting Chairman Uyeda has emphasised a strategic pivot, stating that the agency will prioritise developing clearer regulatory frameworks rather than pursuing aggressive enforcement actions. This marks a deliberate departure from the previous administration’s approach, with Uyeda highlighting the need for judicious deployment of enforcement resources.
