SEC Implements New Approval Process For Investigations

According to BlockBeats, on February 4, Reuters reported that lawyers at the U.S. Securities and Exchange Commission (SEC) have been instructed to obtain leadership approval before formally initiating investigations. This procedural change could potentially slow down the investigation process. This adjustment, previously unreported, is said to have been implemented under the new leadership team following U.S. President Donald Trump's inauguration. Sources familiar with the matter, who requested anonymity due to the lack of public disclosure, provided this information. Typically, the SEC is governed by a five-member commission, including the chairperson, and operates as an independent agency. Currently, the commission consists of three members: two Republicans and one Democrat. The commissioners of the SEC are appointed by the U.S. President. Recently, some enforcement personnel were informed that all formal investigation orders, which are necessary for issuing subpoenas for testimony or documents, must receive approval from the commission. Previously, this authority was delegated to lower-level staff, with the commission retaining veto power, though it was not always exercised.