On August 21, 2025, the SEC named Judge Margaret Ryan as its new Director of Enforcement. With her background in law and a reputation for structure, many industry experts expect her to take the reins with a back-to-basics mindset: focusing on fraud, market manipulation, and insider trading instead of sweeping, industry-wide crackdowns.
With Judge Ryan in charge, the SEC looks likely to shift away from the so-called “regulation by enforcement” approach. Instead, actions should stick closer to the law, making the whole process more predictable and transparent—with less second-guessing and more accountability for individuals. The big goal here is to keep retail investors protected and give everyone clearer compliance expectations.
For private equity funds, the appointment of Judge Margaret Ryan signals the promise of a more stable and predictable enforcement landscape. Firms that maintain robust internal controls and adhere to sound compliance protocols may find the Division of Enforcement’s renewed focus on clear violations—such as fraud and market manipulation—favorable to their operations. Under this leadership, there is an expectation that aggressive enforcement actions targeting technical infractions will diminish, with the Division instead prioritizing a transparent, rule-based process firmly grounded in existing statutory requirements. This approach is likely to reduce regulatory uncertainty and foster an environment where firms that faithfully observe securities laws are less exposed to unexpected enforcement initiatives.