SEC Slashes Budget, Axes Staff—Regulators Tighten Belts While Wall Street Laughs

The SEC just greenlit its own austerity plan—freezing budgets and cutting headcount. Because nothing says ’protecting investors’ like fewer cops on the beat.

Meanwhile, crypto exchanges keep minting millions. Coincidence? Probably not.

SEC says no more meme coin policing

The SEC’s request for a trimmed workforce and flat budget also comes with a bit of a warning. If Congress dumps more responsibility on the agency, like folding in oversight from a US audit watchdog that could be shut down, the SEC may have to stretch its limited resources even further.

That’s why the agency says the flat budget WOULD still leave about $100 million in reserve, to deal with what it calls “a number of uncertainties.” There’s no list of what those are, but the implication is clear: expect more work, not more funding.

Chairman Paul Atkins is scheduled to testify before the Senate on Tuesday to explain the numbers and the plan. The agency didn’t offer anything beyond what was already in its public filing. But the budget tells a story by itself: fewer people, same money, and a long list of things to do.

Meanwhile, the SEC has officially walked away from meme coins. That decision became public back in February, when the agency declared that most meme coins aren’t securities under US federal law. 

That move effectively took meme coins off the SEC’s plate and off its radar just weeks after President Donald TRUMP launched his own coin, $TRUMP. The token exploded in value immediately, boosting Trump’s estimated net worth by billions on paper.

Hester Peirce, one of the agency’s longest-serving commissioners, spoke about the decision during the Bitcoin 2025 event in Las Vegas. In an interview with CNBC, she explained why the SEC is staying out of the meme coin scene.

“Here was something where I saw a lot of interest in this out in the world — in meme coins — and it made sense for us to say, ‘People, if you are expecting that there’s SEC protection around these, you should not expect that,’” Peirce said.

That approach fits the broader picture. With fewer people, a tight budget, and potential new responsibilities, the SEC is narrowing its focus. Degens looking for guidance or justice against meme coin scams aren’t going to find it here. The agency has moved on. You’re on your own.

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