New US SEC chief plans to cut contracts and staff, sources report

The U.S. Securities and Exchange Commission (SEC) is facing a 15% reduction in staff members according to sources familiar with the matter. The new SEC chief, Paul Atkins, who took on the role two weeks ago, mentioned plans for a targeted reorganization of the agency. This includes a review of contracts for business services, particularly in information technology. Over 600 staff members have already left the SEC due to resignation offers in alignment with efforts to downsize the federal government.

Atkins hinted at the possibility of further staff reductions, causing apprehension among SEC employees. This move is in line with President Donald Trump and Elon Musk’s Department of Government Efficiency’s initiatives to streamline government operations. Atkins emphasized the agency’s commitment to its core mission of protecting investors, promoting capital formation, and maintaining efficient markets as mandated by Congress.

During a town hall meeting with SEC staff, Atkins underscored the agency’s renewed focus on its fundamental responsibilities. While discussing the reorganization plans, Atkins did not address the presence of the Department of Government Efficiency (DOGE), which has been actively involved in SEC matters since March. At this town hall, Atkins did not entertain questions due to his recent appointment, but he mentioned the allocation of specific duties to the commission’s other three members.

Former acting Commissioner Mark Uyeda is assigned to oversee interactions with the International Organization of Securities Commissions, a key body for setting industry standards. Commissioner Hester Peirce continues to lead the new crypto task force, reflecting the SEC’s growing interest in digital assets. Meanwhile, Commissioner Caroline Crenshaw is responsible for handling issues related to recent Supreme Court decisions and the utilization of in-house judges.

The significant decrease in staff has created vacancies that need to be filled, presenting opportunities for younger employees within the SEC, as per Atkins’ address to the staff. The commissioners did not provide immediate comments on these developments. The restructuring and realignment of responsibilities within the SEC indicate a strategic shift under the leadership of Atkins, who aims to streamline operations and refocus on the agency’s core regulatory functions.