SEC Plans Leadership Changes as Cost-Cutting Measure

The U.S. Securities and Exchange Commission (SEC) plans to eliminate the top leaders at its 10 regional offices as part of a broader cost-cutting initiative. According to Reuters, sources familiar with the situation say the SEC informed directors across these offices on Friday that their positions will be eliminated under a plan set to be submitted next month.

This initiative aligns with a larger push for cost reductions under the Trump administration, which has aimed to reduce federal agency sizes and cut expenses. The SEC, responsible for overseeing the U.S. capital markets, is responding to pressure from President Donald Trump to decrease staff and expenses.

SEC leaders have been tasked with proposing significant budget cuts. As part of this cost-saving effort, a new department, DOGE—led by Elon Musk—has been involved, with Musk demanding that federal employees report their recent accomplishments or face termination.

The decision to remove the regional directors requires approval from the three-person SEC commission and follows a pattern of scaling back the agency’s crypto enforcement activities.

The SEC operates from San Francisco to Miami, where officials conduct investigations into public companies, brokers, and investment advisers. The removal of these directors represents a substantial transformation within the agency, as they play vital roles in enforcement and examination decisions. The reorganization plan will be presented by SEC leaders, including Acting Chairman Mark Uyeda, with expectations on enhancing operational efficiency.

In reaction, former SEC lawyer Marc Fagel remarked, “It’s almost like the head of DOGE, previously charged with securities fraud and currently the defendant in an ongoing SEC enforcement action, isn’t entirely free of conflicts in dismantling the SEC’s effectiveness.”