The Securities and Exchange Commission (SEC) has announced that Gurbir S. Grewal, Director of the Division of Enforcement, will depart on October 11, 2024. Following his departure, Deputy Director Sanjay Wadhwa will assume the role of acting director, while Chief Counsel Sam Waldon will serve as acting deputy director.
According to a press release by the SEC, during Grewal's tenure as enforcement director, he focused on restoring investor trust through proactive enforcement and fostering a culture of compliance in financial markets. The division prioritized holding market insiders and gatekeepers accountable for securities violations, addressing emerging risks like cryptocurrency noncompliance, and promoting cooperation through self-policing and remediation.
Under Grewal's guidance, the division authorized over 2,400 enforcement actions, resulting in more than $20 billion in penalties and $1 billion in whistleblower awards. His successor, Wadhwa, has been closely involved in key enforcement efforts, including actions against institutional insider trading and financial misconduct.
House Majority Whip Tom Emmer responded to the news on social media platform X. Emmer said: "SEC Director of Enforcement Grewal encouraged lawlessness and chaos at @GaryGensler’s SEC. He even admitted it to us on the record in 2022. Good to see him packing his bags."
Representative French Hill, chairman of the Subcommittee on Digital Assets, also commented via social media: "During his tenure at @SECGov, Director Grewal pursued a needless and arbitrary 'regulation by enforcement' strategy that has only created uncertainty and challenges for digital asset companies. Hopefully, @SECGov will now turn the page and adopt an approach that fosters a fair and transparent regulatory environment for all market participants."
The SEC is responsible for regulating the securities industry with a focus on protecting investors, maintaining fair markets, and promoting capital formation. The agency is led by up to five Commissioners appointed by the President with Senate approval.
