Introduction
In 2025, the regulatory landscape of United States shifted as the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) changed how they handle enforcement. While many expected de-regulation after executive orders aimed at cutting administrative burdens, corporate departments faced a more complicated reality. Instead of stepping back, both the agencies returned to basics, focusing less on new legal theories and more on strong, meaningful enforcement actions. This shift has made traditional frauds, gatekeeper responsibilities, and the trustworthiness of digital consumer platforms the main areas of concern.
SEC’s return to Enforcement
In 2025, the Securities and Exchange Commission (SEC) focused on returning to its main goal, i.e., protection of retail investors and keeping the markets fair and orderly. Throughout the year, the Commission moved away from the broader and often criticized regulation by enforcement approach used before, particularly in the digital asset area. With new leadership and fresh approach, the SEC shifted its attention to common violations like insider trading, financial reporting fraud, and failures by corporate gatekeepers. This change didn’t mean less oversight but a stronger focus. By targeting cases with clear victims and well-established legal rules, the SEC aimed to rebuild trust and make sure market players couldn’t hide behind complicated financial products.
An important part of the SEC’s 2025 strategy is its strong focus on holding gatekeepers responsible. The Commission is increasingly making auditors, underwriters, and legal counsels answerable for their role in granting access to public markets. This approach has been highlighted by several landmark cases against accounting firms for widespread problems in audit quality and independence. The idea behind this shift is that strict enforcement of gatekeepers is the best way to stop major market problems. By increasing the pressure on professionals who verify financial health, the SEC has effectively passed some ongoing oversight to the private sector, encouraging everyone to be more careful.
At the same time, the SEC has been dealing with the fast rise of artificial intelligence in financial services. AI washing, which means the exaggerating a company’s AI abilities, became a top enforcement focus. As investor rushed to firms claiming unique algorithmic advantages, the SEC launched targeted investigations to make sure these claims were real. These actions warn that while the Commission may be cautious with some new technologies, it will act firmly when those technologies are used to hide traditional securities fraud.
FTC’s Aggressive Enforcement
Deregulation has been an important priority for the second Trump Administration. In April, 2025, President Trump signed Executive Order 14267, “Reducing Anti-Competitive Regulatory Barriers”, which asked the Federal Trade Commission (FTC), Department of Justice (DOJ) and other agencies to find anticompetitive regulations. FTC Chairman had shared the Commission’s list of rules to repeal or change. FTC sees over 125 regulations as anticompetitive and believes that this limit competition and should be changed.
This push for deregulation doesn’t mean that the FTC is backing off from antitrust enforcement. This reflects the FTC’s approach which favours handling cases individually rather than making broad rules. For example, on 5th September, 2025, the FTC said that it would no longer defend its rule banning non-compete clauses, leaving the legislating function to the Congress and the states. However, in the same statement, the Chairman of FTC said that the Commission would ‘aggressively’ go after unlawful non-competes.
The main point is that while the FTC might be moving away from making new rules, it is still committed to strongly enforcing antitrust laws. Companies should stay aware of changing agency priorities, especially where enforcement might move faster than regulation. Additionally, the FTC had released its draft strategic plan for 2026-2030 on 26th September, 2025 and was seeking public feedback. A key focus was the protection of children’s privacy online. The plan also covers other important issues, such as fighting opioid recovery scams and other health fraud, as well as stopping unfair and deceptive practices in the ticket sales industry.
Although the FTC plays a major role in government-wide deregulation, its main priorities focus on enforcing rules. This is probably because it can more easily recover money for rule violations than for breaches of the FTC Act. In fact, one key way the FTC plans to measure success is by the amount of money it collects through its orders. This approach might encourage more aggressive enforcement rather than business counselling, even though the draft plan also talks about increasing business education and outreach.
Conclusion
The regulatory changes in 2025 ended the simple idea of a deregulatory era. Although Executive Order 14267, asked agencies to find and remove restrictive rules, but instead of stepping back, the SEC and FTC have shifted from broad rulemaking to focused, aggressive enforcement. The Securities and Exchange Commission’s path in 2025 shows that sticking to basic principles can be more powerful than chasing new legal ideas. By focusing on investor protection and fair markets, the Commission has strengthened the usual rules for corporate behaviour. The Federal Trade Commission has shown that supporting deregulation doesn’t mean stepping back from antitrust or consumer protection enforcement. By leaving lawmaking to Congress and the states, while promising to aggressively tackle illegal actions case by case, the FTC has become more flexible and focused on litigation. Moreover, the FTC’s draft strategic plan for 2026-2030 highlights its focus on real enforcement instead of administrative hurdles. The 2025 “Regulatory Reckoning” showed that agencies can be both leaner and tougher. For companies, the message is clear: efforts to reduce “anti-competitive barriers” come with a firm commitment to punish those who break core laws.
Author: Himanshu Sachdeva, Seniore Associate
Co – Author: Pragati Garg, Intern
