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SEC Enforcement Failures Abandon Investors, Benefit Crooks

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Benjamin Schiffrin of Better Markets argues that the SEC’s enforcement record under Chair Paul Atkins shows a retreat from its responsibility to protect investors. His criticism follows the agency’s release of enforcement results for the fiscal year ending September 30, 2026. He rejects officials’ claims that case counts are not the best way to assess enforcement, saying those claims distract from sharply reduced activity. The SEC brought 25% fewer cases in 2026 than in 2025, which had already marked a 20-year low.

The statement also points to a steep fall in financial remedies: the SEC obtained orders for nearly $18 billion in monetary sanctions in 2025, compared with about $1 billion in 2026. Atkins has argued that case numbers and financial penalties are not the only or most telling measures, and that the agency wants to emphasize individual accountability. Schiffrin counters that the SEC has not demonstrated a stronger alternative: it has pursued cases involving serious misconduct without holding individuals responsible. He concludes that the agency is failing on both the volume and quality of enforcement, prioritizing corporate interests over accountability and leaving investors exposed to misconduct.

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