The U.S. Securities and Exchange Commission (SEC) is reportedly set to eliminate the top leadership positions at its 10 regional offices as part of a cost-cutting initiative that the Trump administration has been pushing forward.
The agency informed its regional directors Friday that their roles would be removed, following the submission of its plan next month, according to an exclusive report by Reuters.
The decision to eliminate the regional director roles, however, requires approval from a three-person commission within the SEC.
The restructuring effort is being led by Acting Chairman Mark Uyeda, Republican Commissioner Hester Peirce, and Democrat Commissioner Caroline Crenshaw.
As a key body overseeing the U.S. capital markets, which are valued at over $100 trillion, the SEC has been under pressure from the Trump administration to reduce staffing and cut costs.
SEC divisions and offices have been instructed to submit their reorganization plans by Tuesday.
The appointment of Paul Atkins as the permanent SEC leader is still pending.
Impact on SEC’s operations
While the SEC’s funding mainly comes from industry fees and the agency is considered “deficit neutral,” the exact benefits of these cuts to taxpayers are unclear. The SEC’s budget report to Congress indicates that the agency does not rely on taxpayer funds in the same way as other government departments.
Last week, senior SEC employees participated in a call where agency leaders mentioned that several staff members were working for the Department of Government Efficiency (DOGE), as part of the new cost-reduction efforts. DOGE, led by Musk, is helping drive this federal workforce overhaul.
No office closures for now
Even though the SEC closed its Salt Lake City regional hub in June 2024, there were no immediate plans to shut down other regional offices, sources revealed.
The SEC offices, spread from San Francisco to Miami, handle investigations into public companies, brokers, and investment advisers. They also lead high-profile lawsuits and examinations in their respective regions.
“The regional leadership is what the home office has always looked to for making decisions about enforcement cases and exams. This is a difficult layer to remove,” said Andrew M. Calamari, a partner with Finn Dixon & Herling LLP and former director of the SEC’s New York office.
Crypto focus shifts
The SEC has also started refocusing its approach to cryptocurrency. Its crypto enforcement unit has been scaled back, with certain staff reassigned to other roles.
Uyeda has emphasized that the new unit will support the SEC’s efforts to develop new policies for the crypto sector while ensuring enforcement resources are used effectively.
