The U.S. Securities and Exchange Commission (SEC) is set to eliminate the top leaders of its 10 regional offices as part of cost-cutting measures recommended to the Trump administration, according to sources familiar with the matter.
The move aligns with broader efforts by Republican President Donald Trump and special adviser Elon Musk to downsize the federal workforce. The SEC, responsible for overseeing the $100 trillion U.S. capital markets, faces pressure to slash costs, with agency leaders instructed to submit reorganization plans next month.
Regional directors, who lead key investigations and enforcement actions from offices spanning San Francisco to Miami, were informed on Friday that their roles would be cut. “The regional leadership has long guided decisions on enforcement and exams — this is a difficult layer to remove,” said Andrew M. Calamari, former SEC New York office director.
The plan, which requires a vote by the three-person commission, follows the June 2024 closure of the SEC’s Salt Lake City hub. However, sources indicated there are no immediate plans to shut other offices.
Discussions around the restructuring involve the newly formed Department of Government Efficiency (DOGE), with senior SEC staff collaborating on cost-cutting strategies. Acting Chairman Mark Uyeda, alongside Republican Hester Peirce and Democrat Caroline Crenshaw, expects division leaders to present reorganization recommendations by Tuesday.
The SEC has also scaled back its crypto enforcement unit and reassigned staff, signaling a shift in focus. Uyeda emphasized the changes would streamline enforcement efforts while advancing new policies for the crypto sector.
Despite these cuts, the SEC remains “deficit neutral,” funded by industry fees rather than taxpayer dollars.
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