The following is part of our annual publication Selected Issues for Boards of Directors in 2025. Explore all topics or download the PDF.
The Securities and Exchange Commission (SEC) and Department of Justice (DOJ) both had active enforcement years in 2024. The SEC’s aggressive focus on crypto enforcement continued, resulting in the filing and continued litigation of several cases in federal courts nationwide. The DOJ announced a number of policy updates in 2024, including guidance related to voluntary disclosures and corporate enforcement, and remained active in the foreign corruption and national security spaces. Finally, both the SEC and DOJ have increased their focus on AI and new technologies, showing increasing concern about the risks associated with AI, with the DOJ issuing guidance on AI in compliance programs and the SEC bringing cases related to misleading marketing about the use of AI in investment strategies. As noted more fully below, with the incoming Trump Administration, enforcement priorities at both SEC and DOJ are expected to shift. The SEC is expected to have a renewed focus on traditional enforcement areas, such as accounting fraud, misrepresentations in securities offerings and insider trading, with significant reductions in enforcement activity related to crypto, cyber incidents and ESG issues. The DOJ is likely to continue its focus on FCPA and national security (including sanctions and export controls), while devoting increasing resources to immigration and violent crime. Additionally, the benefits of cooperation are likely to increase at both the SEC and DOJ, with the potential for reduced penalties for companies able to effectively demonstrate their cooperation and self-remediation.
In anticipation of the incoming Trump Administration, there already have been notable personnel changes at both SEC and DOJ with more to come. Specifically, SEC Chair Gary Gensler and Democratic Commissioner Jaime Lizarraga have announced that they will depart. In addition, Trump has announced the nomination of former Commissioner Paul Atkins as Chair, who will stand to replace the outgoing heads of the Divisions of Enforcement and Corporation Finance, among other positions. On the DOJ side, Attorney General-nominee Pam Bondi and Deputy Attorney General nominee Todd Blanche will work with all-new appointees at the top levels of DOJ. Most of the nominees for those positions have yet to be announced, though the incoming administration has announced the nomination of Gail Slater to head the Antitrust Division and Kash Patel to run the FBI.