Odaily Planet Daily News: Two insiders revealed that the US SEC is currently requiring its lawyers to obtain high-level approval before officially launching an investigation. The new requirement stipulates that law enforcement officers must obtain permission from politically appointed commissioners in order to issue subpoenas, request documents, and compel testimony. Previously, staff had the authority to independently initiate formal investigations, while SEC commissioners supervised the entire process.
This change occurred after the leadership changes at the SEC, including the departures of former chairman Gary Gensler and Democrat Jaime Liz á rraga last month. President Trump has appointed Mark Uyeda as acting chairman of the committee, which currently consists of three members: Uyeda, Hester Peirce, and Caroline Crenshaw.
According to former bank advisor and current NFT market analyst Tyler Warner, the new system will prevent "malicious attacks". SEC commissioners will act more cautiously and are unlikely to approve investigations without conclusive evidence.
On the other hand, this procedural change may pose a risk of legal fraud cases being overlooked or delayed. It's too early to say whether it's a net positive or negative, although I lean towards the positive, "Warner added.
During the previous administration, the SEC needed approval from two enforcement officers to officially initiate an investigation (sources did not specify whether the committee had officially voted to revoke the previous authorization), and enforcement officers could continue informal investigations, including sending information requests, without the commissioner's approval. (Reuters)
