SEC and PCAOB enforcement actions hit multiyear lows in 2025, with sharp declines in cases and penalties.

Enforcement actions by the SEC and PCAOB hit multiyear lows in 2025, with the SEC launching only 10 accounting and auditing enforcement actions—68% fewer than in 2024—and collecting $31 million in settlements, down from $907 million. Most SEC actions occurred in the final weeks of Chair Gary Gensler’s term, with only four beginning after Chair Paul Atkins took office in April. The PCAOB finalized 37 enforcement actions, its lowest since 2021, with penalties totaling $17.6 million—50% less than 2024—over 98% of which were imposed before outgoing Chair Erica Williams left in July. Firms accounted for over two-thirds of PCAOB audit action respondents, up from half in 2024. Despite the drop in enforcement, median securities class action settlements reached a near three-decade high of $17.3 million.