U.S. Senator Accuses SEC Chair of Misleading Congress in Hearing, Questions Steep Decline in Enforcement Actions

On April 18, Decrypt reported that U.S. Senator Elizabeth Warren—senior Democratic member of the Senate Banking Committee—sent a letter to SEC Chair Paul Atkins alleging he may have “intentionally misled” Congress during a February 12 hearing about a drop in new SEC enforcement actions, noting that significant false statements to Congress could carry criminal liability. The report cites the SEC’s 2025 enforcement data disclosure: the agency added 456 total enforcement actions last year, with roughly 200 originating from the prior administration and around 256 under the current one—well below the historical annual average of about 765. Warren argues the sharp drop in enforcement actions, staff cuts, and sudden leadership changes could weaken the SEC’s ability to protect investors and uphold market order, questioning whether political favoritism or selective enforcement is at play. The SEC declined to comment on the matter.