Every time a new administration takes office, agencies and bureaus like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)—as well as professionals throughout the securities and financial industries—wonder how the administration’s priorities and goals will affect matters like enforcement and regulatory compliance. For example, Gary Gensler served as the Chair of the SEC from 2021 until January of 2025, and Paul Atkins is poised to assume this role during the Trump Administration. Generally speaking, these two individuals will likely take different approaches to regulatory enforcement. Gensler’s leadership saw “the most consequential reforms in a generation of the United States’ two largest markets—the equity markets and the Treasury markets.” Additionally, “To better promote trust, transparency, and integrity in the capital markets, the SEC under Chair Gensler adopted a number of changes regarding corporate governance, including updating the rules for when corporate insiders can sell their shares, for when executives have to give back compensation based on erroneously reported financials, and for disclosure of executive pay versus performance.” In contrast, the SEC under Atkins’ leadership will likely seek to either undo these enhancements or to take a much more hands-off approach to enforcement, especially when it comes to matters like cryptocurrency and climate-related disclosures.
As a financial admisor, it’s important to take some time to understand how this administrative change could affect your professional obligations and the overall landscape of FINRA enforcement actions. It can be difficult to keep up with the ever-evolving and quickly emerging changes, so you can enlist the guidance of a highly trusted and experienced securities law attorney to help answer your questions and address your concerns as they arise. Let’s take a closer look at some of the potential ways that the new administration’s priorities and goals could affect SEC enforcement and the FINRA complaint expungement process within the next few years.
FINRA’s Amended Rules Under a New Administration
Professionals throughout the financial and securities industries are likely well aware of the significant FINRA rule changes that were recently approved by the SEC. Under these new rules, those seeking a FINRA expungement to have erroneous or baseless customer dispute information removed from the CDC and BrokerCheck face stricter time limits in which to file these requests. Additionally, these matters will be overseen by a panel of three Special Aribtrators who have received specialized training to serve in this capacity. The panel will be randomly selected from a list of qualified arbitrators, and the decision to award expungement relief must be unanimous. Since the implementation of these tighter rules and requirements, the number of FINRA complaint expungement requests has decreased. So, how might this trend be affected by the Trump administration? Under Trump’s first term, FINRA was far from a priority, and the number of disciplinary actions seemed unaffected by the administration. For now, industry experts predict that FINRA will remain low on the administration’s priority list, which means that there will likely be little change to the enforcement or regulatory compliance activities.
How SEC Enforcement May Change
Since the current administration has signaled its friendliness toward cryptocurrency firms, industry experts predict that the SEC will take a lighter approach to regulating the crypto industry. Although FINRA recently released its 2025 Annual Regulatory Oversight Report, a significant portion of which addresses cryptocurrency considerations, the current administration may take a looser and more hands-off approach to tightly regulating and enforcing cryptocurrency-related activities. Moreover, the SEC’s recent adoption of rules aimed to enhance and standardize climate-related disclosures for investors may face little to no enforcement activity, as these rules clash with the administration’s top priorities. In fact, there may even be efforts to undo or repeal climate-related disclosures, so it’s worth keeping an eye out for such initiatives and how they could impact your firm’s regulatory compliance obligations. Should any questions arise, you can reach out to a knowledgeable and highly experienced securities law attorney for the personalized guidance you need to make informed decisions with greater confidence.
Anticipating the Future of Securities Compliance
It’s no secret that the new administration is making a substantial number of changes and decisions at a rapid pace. For example, a new executive order could “reshape the regulatory landscape by requiring independent agencies, including the Securities and Exchange Commission, to seek White House approval before issuing new rules.” The executive order directs the Office of Management and Budget to assume control of reviewing the SEC’s funding and regulatory proposals. Moreover, “Although the fact sheet outlining the order does not mention enforcement policies, some observers believe the move could indirectly influence how agencies police financial markets. Reports indicate that SEC enforcement attorenys may now be required to seek approval from political appointees before initiating formal investigations.” For now, much is still unknown and uncertain about the validity and enforceability of the executive order, and there will almost certainly be legal challenges to the order in the upcoming months. For now, however, financial advisors and securities firms are in a somewhat vague position regarding their securities and regulatory compliance obligations. For more customized guidance relating to these matters, consider enlisting the support of a trusted and highly qualified securities law attorney who can help you identify the most strategic course of action while safeguarding your best interests at every turn.
Get Started With a Trusted Legal Advocate Today
It’s common to experience some uncertainty during this transitional time. As a professional in the securities and financial services industry, even small rule changes can carry significant implications for you and your firm. Whether you need help pursuing a FINRA expungement request or understanding how the latest SEC or FINRA rule changes affect your professional obligations, consider seeking the counsel of a dedicated and friendly securities law attorney who knows how to examine every detail of your situation to determine the most appropriate path forward. Together, you can make informed choices with the confidence and certainty you deserve.
As the new administration continues to review and reshape multiple agencies and bureaus, it’s important for financial advisors and securities firms to keep a close eye on how these changes could affect SEC and FINRA regulation and compliance obligations. Reach out to Judex Law, LLC, at (303) 523-4022 to discuss your concerns with a knowledgeable and highly experienced securities law attorney.