SEC Reduces Number of Cases by 24% to a Minimum Since 1991

The U.S. Securities and Exchange Commission (SEC) reported a 23.7% decrease in the number of enforcement actions in the 2026 fiscal year, from 456 to 348. According to a Reuters analysis based on the regulator's historical statistics, this is the lowest level since 1991. The reporting period ended on September 30, and the results were presented by the SEC on November 10, 2026.

Of the total, 235 actions were related to standalone civil and administrative cases, compared to 303 the previous year. Another 47 were follow-on administrative proceedings, and 66 were related to violations of reporting disclosure requirements. The total amount of financial penalties and other payments decreased to $1.095 billion.

The SEC reported that of this amount, $343 million were civil penalties, and $752 million were disgorgement of ill-gotten gains and accrued interest. Separately, the regulator noted that approximately $731 million was distributed to affected investors over the year. These funds were received by more than 250,000 individuals.

SEC continued investigations into cryptocurrency fraud

Despite the overall decrease in actions, the SEC continued to pursue alleged fraudulent schemes involving digital assets. In particular, the regulator charged three organizations posing as cryptocurrency trading platforms and four investment clubs. According to the commission, participants in the scheme raised funds from retail investors through social media, causing damage of at least $14 million.

In another case, the SEC accused the founder of a bitcoin mining company of misappropriating $48.5 million of investor funds. The regulator claims that the business raised more than $95.6 million from approximately 6,400 people. These charges should not yet be considered as facts established by the court.

In February 2026, a jury also found Ismael Zarco Sanchez civilly liable for securities law violations in the CryptoFX case. He was one of the defendants in the alleged $300 million Ponzi scheme. According to SEC materials, organizers promised investors returns from cryptocurrency and foreign exchange operations but used part of the raised funds to pay other participants and cover personal expenses.

Report mentions audit violations at FTX and BitConnect case

In April 2026, the SEC settled claims against Francis Decker, who led the audit of the bankrupt cryptocurrency exchange FTX at Prager Metis. The regulator found that the audit team lacked sufficient knowledge of FTX's business and the cryptocurrency market, and the audits conducted did not meet professional standards. Decker agreed to a restriction on practicing before the SEC with the possibility of petitioning for reinstatement after two years, without admitting or denying the commission's findings.

Another decision was made in July regarding Michael Noble, who was involved in promoting the BitConnect cryptocurrency lending program. The court ordered him to pay approximately $1.07 million, including disgorgement, interest, and a civil penalty. The SEC had previously brought claims against him and other defendants related to promoting the investment product and operating without necessary registration.

Regulator changes approach to investigations

The 2026 fiscal year was the first full reporting period under SEC Chairman Paul Atkins. He stated that the regulator's effectiveness should be assessed not only by the number of cases and the amount of penalties but also by the results of investor protection. The agency intends to focus more on significant violations, including fraud, market manipulation, and providing false financial information.

The change in approach to the cryptocurrency sector became noticeable back in 2025. According to Cornerstone Research, the number of new SEC enforcement actions related to crypto assets decreased from 33 in 2024 to 13 in 2025, or by 60%. However, researchers note that eight cases initiated in 2025 under Atkins' leadership contained fraud allegations.

Simultaneously, the SEC is developing analytical tools to identify potential violations. The new Office of Super Intelligence and Analytics uses blockchain analysis, financial flows, and other data to detect suspicious activity. According to the commission's leadership, the development of these mechanisms should help identify violations at earlier stages, although the actual effectiveness of the new approach will need to be evaluated based on future work results.