The first quarter of 2025 reflected a number of meaningful changes at the Securities and Exchange Commission (SEC or Commission) with more to come. Former Chairman Gensler departed the agency on January 20 upon President Trump’s inauguration. Trump has nominated Paul Atkins to serve as the next SEC Chairman. Atkins is a former SEC Commissioner who knows the agency well and is expected to be an effective leader. However, his Senate Banking Committee confirmation hearing did not come until very late in the quarter, as it was finally scheduled on March 27. During his hearing, Atkins shared his views on the current regulatory landscape. He noted that the recent regulatory environment stifles capital formation and indicated his desire to pivot from the SEC’s recent emphasis on aggressive enforcement. On April 3rd, the Committee approved his nomination along party lines which will move to the full Senate to vote.

January marked the transition between the priorities of the former Commission to the new Commission, with a few noteworthy enforcement cases pushed through before Chairman Gensler departed. For most of the quarter, the SEC was led by Republic Commissioner, Mark Uyeda, serving as Acting Chairman, Republican Commissioner, Hester Peirce, and a sole Democratic Commissioner, Caroline Crenshaw. In theory, the three-person composition could effectively have veto power over actions requiring a vote of the SEC because Commissioner Crenshaw can deny a quorum for any action she strongly opposes. However, if Atkins is confirmed, the Republican majority would no longer need the Democratic Commissioner, so it will be able to begin with formal rulemaking steps.

No significant rules were proposed or moved forward in the first quarter. Certain compliance dates that were scheduled for key regulatory filings in early 2025 were extended during the quarter. As is typical upon a change in administration, multiple senior staff left the agency in January coinciding with Gensler's departure. President Trump and the Department of Government Efficiency took aim at the SEC, among other federal agencies, resulting in hundreds of other SEC staff departures.