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The Future of SEC Enforcement Under the Biden Administration | BakerHostetler

[co-author: Madison Gaudreau] On April 14, 2021, the U.S. Senate confirmed the nomination of Gary Gensler as the 33rd Chair of the U.S. Securities and Exchange Commission (“SEC” or “Commission”).[1] This change will bring forth a Democratic majority at the SEC which, in turn, suggests that the Commission will change its current emphasis on capital formation to focus more on investor protection and the following other areas: rules required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) such as security-based swaps, compensation, and stress tests for certain SEC registrants like asset managers; and inspections, examinations, and enforcement. Below we examine what to expect from Mr. Gensler’s SEC, including an expected new enforcement landscape and heightened interest in digital currency, Special Purpose Acquisition Companies (“SPACs”), and new disclosure mandates for issuers on climate and ESG issues.

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