A recent report by Cornerstone Research reveals that the Securities and Exchange Commission (SEC) significantly reduced its enforcement actions related to accounting and auditing in 2024. According to Accounting Today, this marks a sharp contrast from the previous two years of increased activity under former SEC Chair Gary Gensler. 

According to the report, the SEC initiated only 45 enforcement actions in fiscal year 2024, a 46% drop from 2023 and the lowest level since 2021. Despite this slowdown, monetary penalties surged, reaching over $770 million—a 32% increase from the prior year and the highest total since 2021. 

The report also highlighted shift in enforcement focus, with actions against U.S. respondents falling by 56%, while cases involving non-U.S. respondents rose by 18%. Additionally, the number of enforcement actions citing internal control weaknesses or financial restatements plummeted by 78%. 

The reduction in enforcement coincides with the Supreme Court’s ruling in SEC v. Jarkesy, which mandated jury trials for certain SEC cases. The agency dismissed six administrative proceedings following the decision. 

With acting SEC Chair Mark Uyeda at the helm and Trump nominee Paul Atkins awaiting confirmation, the SEC’s regulatory approach is expected to continue evolving. Recently, speaking at the Wall Street Journal’s CFO Network Summit, Uyeda emphasized a more methodical approach to financial regulation, likening the SEC to a “super-sized freighter” rather than a speedboat.