The U.S. Securities and Exchange Commission (SEC) plans to remove the top leaders at its 10 regional offices as part of a broader cost-cutting initiative. As reported by Reuters, according to sources familiar with the matter, the SEC informed directors across these offices on Friday that their positions will be eliminated as part of a plan set to be submitted next month.
This move is part of a larger push for cost reductions under the Trump administration, which has been focused on purging federal agencies and cutting expenses. The SEC, which oversees the U.S. capital markets, is responding to pressure from President Donald Trump to reduce staff and expenses.
SEC leaders have been asked to suggest major budget cuts. As part of cost-cutting, a new department DOGE, led by Elon Musk is involved, and Musk has demanded federal employees list their recent accomplishments or risk being fired.
The decision to eliminate the regional directors, which requires approval from the three-person SEC commission, comes as the agency has already started scaling back its crypto enforcement efforts.
The SEC has offices from San Francisco to Miami, where officials lead investigations into public companies, brokers, and investment advisers. These directors play a crucial role in enforcement and examination decisions, making their removal a significant change within the agency. The reorganization plan will be submitted by SEC leaders, including Acting Chairman Mark Uyeda, and is expected to focus on restructuring operations to improve efficiency.
Reacting to the same, former SEC lawyer Marc Fagel said, “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.”
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