SEC to cut regional directors amid cost-saving push

The U.S. Securities and Exchange Commission (SEC) is reportedly planning to eliminate the top leadership positions in its ten regional offices as part of cost-cutting measures under the Trump administration.

The agency informed the regional directors of this decision on February 21, with the changes expected to be implemented following the submission of a plan next month.

These cost-cutting efforts are influenced by the Department of Government Efficiency (DOGE), and Trump's advisor, Elon Musk.

DOGE is seemingly focused on the SEC, asking the public for insights on waste, fraud, and abuse relating to the agency.

The SEC is under pressure from the Trump administration to reduce staff and cut expenses.

The administration has already begun firing thousands of people across federal agencies.

The SEC's senior staff reportedly joined a call on Feb. 20 where agency leaders said several staff were liaising with DOGE.

The agency’s various departments must report to acting chair Mark Uyeda with reorganisation plans on Feb. 25.

While most SEC staff are based in Washington, D.C., the regional offices span from New York and San Francisco to smaller cities like Atlanta and Boston.

These offices are responsible for examining and investigating companies in their respective areas.

Cutting the offices’ regional directors will require a vote by the SEC’s current three-person commission.

The SEC has already begun to wind back its regulatory remit, especially its previous focus on the crypto industry under former chair Gary Gensler.

It’s now reshuffled and downsized its crypto enforcement team and paused many of its lawsuits filed against crypto firms.

In June 2024, the SEC closed its regional office in Salt Lake City, citing “significant attrition.”