Informed sources: The U.S. SEC requires its staff to obtain senior approval before initiating investigations after leadership changes

ChainCatcher news, according to a report by Reuters, two insiders revealed that the U.S. SEC is currently requiring its lawyers to obtain high-level approval before formally initiating an investigation. The new requirement stipulates that enforcement personnel must obtain permission from politically appointed commissioners before issuing subpoenas, requesting documents, and compelling testimony. Previously, staff had the authority to independently initiate formal investigations, while SEC commissioners oversaw the entire process.

This change comes after a leadership shakeup at the SEC, including the departure of former Chair Gary Gensler and Democrat Jaime Lizárraga last month. President Trump appointed Mark Uyeda as acting chair, and the commission is currently composed of three commissioners: Uyeda, Hester Peirce, and Caroline Crenshaw.