Current Developments in SEC Enforcement for Public Companies: 2025–2026
In the US Securities and Exchange Commission’s fiscal year 2025 and early fiscal year 2026, enforcement involving public companies shifted significantly amid leadership changes, staffing constraints, and a renewed focus on traditional investor fraud. While enforcement activity declined during this period, the SEC is expected to increase actions in targeted areas in its fiscal year 2026 as priorities and resources realign.
Key Takeaways
- SEC public company enforcement declined sharply in fiscal year 2025 but is expected to rebound in certain areas in fiscal year 2026.
- Penalties are trending smaller and more closely tied to precedent and investor harm.
- Cross-border cases are expected to increase as the new Cross-Border Task Force ramps up.
- Disclosure-related cases—especially in life sciences—remain a core enforcement focus.
- The SEC is focusing on individual accountability, especially by executives and gatekeepers.
- Insider trading remains a significant priority area, supported by advanced data analytics.
- Artificial intelligence, crypto, and cybersecurity issues will be evaluated through the existing legal framework.
This report examines the enforcement developments underlying these trends and looks ahead to how the SEC is likely to approach public company investigations and actions in fiscal year 2026 and beyond. Drawing on recent cases, litigation activity, and public statements from Commission leadership, it provides practical insight for public companies navigating evolving disclosure, enforcement, and compliance risk.
