Paul Atkins was formally sworn in as the 34th Chairman of the SEC on April 21, 2025, bringing with him a new era focused on investor protection, fair, orderly, and efficient markets, and capital formation. Changes in priorities and personnel quickly followed, as Chairman Atkins noted his intent “to protect investors from fraud, to keep politics out of how our securities laws and regulations are applied, and to advance clear rules of the road that encourage investment in our economy to the benefit of all Americans.” Atkins has highlighted a top priority to “provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.” Throughout the quarter, the SEC’s Crypto Task Force continued hosting various roundtable events throughout the quarter, including crypto trading, crypto custody, tokenization, and decentralized finance (DeFi).

Chairman Atkins appointed new Directors of two of the SEC’s six divisions, including Brian Daly, Division of Investment Management, and Jamie Selway, Division of Trading and Markets. The remaining four divisions, Examinations, Enforcement, Corporation Finance, and Economic and Risk Analysis, are all currently led by an Acting Director. Efforts by DOGE to reorganize the federal government led to more than 600 SEC employees opting to voluntarily depart from their positions. The SEC reportedly had decreased headcount by 15% since the beginning of fiscal year (FY) 2025, October 1, 2024, through June 3, 2025. On May 30, Chairman Atkins submitted to Congress the SEC’s FY 2026 flat budget request of $2.149 billion.

No new material rulemaking was proposed or adopted; instead, in June 2025, the SEC withdrew multiple rule proposals that were previously approved under the former Chairman, Gary Gensler, leaving only the Customer Identification Program for RIAs and exempt reporting advisers remaining open. The SEC further extended the compliance date for Form PF amendments and noted that they were reviewing the form based on serious concerns about whether the government's use of the data reported in the form justifies the massive burdens it imposes on private fund managers. The Standish Compliance team continues to track and analyze regulatory developments and their impact on our private fund and other clients. Let us know if you have questions regarding any recent regulatory developments or their application to your firm.