Senator Elizabeth Warren (D-MA), serving as the top Democrat on the influential Senate Banking Committee, has formally charged SEC Chair Paul Atkins with potentially lying to Congress—an offense that could lead to imprisonment.
In a letter sent Wednesday, Warren expressed her belief that Atkins may have intentionally deceived the Banking Committee during a February 12 hearing when questioned about the SEC’s reduced number of new enforcement actions in the latter part of Trump’s presidency.
When questioned initially by Warren, Atkins dismissed her inquiry by stating his disagreement with its premise. Following up later, he admitted to being unsure about the data she cited.
However, last week, the SEC disclosed its enforcement data for 2025, revealing only 456 new cases were brought forward—200 of which occurred under Biden’s administration. This figure starkly contrasts with the average 765 actions annually over the past decade by the SEC during Trump’s term.
“The sharp drop in enforcement actions, a significant decline in staff, and abrupt leadership changes raise serious concerns about the Commission’s dedication to safeguarding investors and markets,” Warren noted.
When contacted by Decrypt, the SEC declined to comment.
Falsely stating material facts to Congress is a punishable offense involving fines and possible imprisonment for up to five years. However, such charges would necessitate action from the Department of Justice, which under Trump was unlikely to prosecute an administration official like Atkins.
Should Democrats regain control in November’s midterms, Warren might be strategically positioned to challenge Atkins more effectively if she becomes chair of the Banking Committee—a likelihood currently at 55% according to Polymarket.
The SEC’s enforcement figures are a critical issue for Democrats, reflecting broader concerns about Trump administration’s reluctance to pursue financial misconduct linked to his family and associates.
Under Trump, the SEC highlighted its reduction in enforcement cases, attributing it to a focus away from crypto-related investigations. Atkins argued that the Biden-era SEC excessively targeted companies within this sector—a stance he has since reversed.
Yet, enforcement activity declined across other sectors as well, including traditional securities. The SEC also faced criticism for how it handled entrepreneurs connected to Trump’s inner circle. Warren cited a Reuters report in her letter about the resignation of the head of SEC enforcement last month due to frustration over cases involving President Trump’s associates.
According to the report, Atkins resisted efforts to pursue these matters.