SEC enforcement actions fall 24%, crypto cases in spotlight

The U.S. Securities and Exchange Commission (SEC) issued 348 enforcement actions in fiscal year 2026, marking a 24% decrease from 456 actions the previous year. These actions primarily concerned alleged crypto fraud and issues arising from FTX's audits. Notable cases included a scheme defrauding investors of at least $14 million and charges against the founder of a Bitcoin mining business for misappropriating $48.5 million.

In April, the SEC settled charges against Francis Decker, who oversaw FTX's audits, for failing to meet professional auditing standards. A jury found Ismael Zarco Sanchez liable for securities fraud and registration violations in relation to the $300 million CryptoFX Ponzi scheme. Additionally, Michael Noble was ordered to pay $1.07 million for promoting BitConnect's crypto lending program.

Fiscal year 2026 was SEC Chair Paul Atkins' first full fiscal year in office, and the agency's enforcement actions were the lowest since 1991. Standalone actions declined to 235 from 303 a year earlier. The report noted that the decline in crypto-related enforcement actions was evident in 2025, with only 13 crypto-related actions compared to 33 in 2024. Five of these 13 cases were filed before the departure of former Chair Gary Gensler.

The SEC announced the establishment of a new enforcement analytics office that would utilize blockchain and financial-flow analysis to identify potential misconduct earlier. The agency also warned that tokenization is a high-risk area in market examinations for the upcoming year.