The U.S. Securities and Exchange Commission (SEC) is undergoing a significant operational shift, modernizing its enforcement protocols to provide more transparency and time for those under investigation. Under the leadership of Chairman Paul Atkins, the agency has implemented a baseline response period of at least four weeks for individuals and firms receiving a Wells notice. This update is part of a broader "back-to-basics" approach that prioritizes due process and clarity. Beyond extended timelines, the SEC now shares more substantial portions of investigative files, including testimony transcripts and key documents, with targets before charges are finalized. This ensures that defendants have a clearer understanding of the evidentiary basis against them. The transition comes during a period of notable decline in overall enforcement activity. Standalone enforcement actions fell to 313 in fiscal year 2025, marking the lowest level in a decade and a 27% drop from the 431 cases filed in 2024. Financial impacts have followed a similar trend, with total monetary settlements decreasing 45% to $808 million—the lowest figure recorded since 2012. Leadership changes have also led to a sharper focus on traditional fraud, such as insider trading, accounting fraud, and market manipulation. Nearly one-third of all enforcement actions in 2025 involved offering fraud or insider trading, up from 26% the previous year. Meanwhile, several high-profile investigations into novel sectors, particularly in the cryptocurrency space, have been closed or dismissed as the agency aligns with new policy priorities. The agency's internal resources are also being reshaped. Staffing levels have seen a 15% reduction, with the total headcount falling to approximately 4,200 employees. The fiscal year 2026 budget request remains flat at $2.149 billion, but it reflects a strategic shift toward a smaller, more centralized enforcement workforce. For market participants, these procedural updates signify a move toward more predictable regulatory outcomes. The formal encouragement of "white paper" submissions—pre-Wells notice documents—allows firms to resolve factual or legal issues earlier in the process. By synchronizing settlement offers with the consideration of collateral waivers, the SEC aims to provide faster resolution and reduce the long-term uncertainty often associated with federal investigations.