"SEC Tightens Investigation Reins: New Rules Require Top Approval"

The U.S. Securities and Exchange Commission (SEC) has introduced new rules requiring its staff to seek approval from top officials before launching formal investigations. This shift in procedure comes after a leadership change, with Mark Uyeda stepping in as Acting Chair following Gary Gensler’s departure.

Previously, SEC enforcement staff could independently start investigations. Now, they must secure approval from politically appointed commissioners before issuing subpoenas or compelling testimony. This change follows the departure of former Chair Gary Gensler, who led a crackdown on crypto firms accused of violating securities laws. With Uyeda, Hester Peirce, and Caroline Crenshaw now leading the SEC, the agency’s approach to crypto enforcement may shift.

NFT analyst Tyler Warner sees this as a necessary step to prevent “rogue attacks,” ensuring that investigations are based on solid proof rather than political or personal motives. However, the implications of this change on ongoing cases, such as the Ripple vs SEC case, remain to be seen.