Trump Administration Eases Financial Regulations and White-Collar Enforcement

The Trump administration has implemented a series of policy shifts and enforcement reductions that critics argue diminish protections for small investors. The Securities and Exchange Commission proposed moving public companies from quarterly 10-Q reports to semiannual financial filings. This proposal faced overwhelming opposition, with 99.5% of 167,802 public comments opposing the change.

Simultaneously, the Department of Labor interpreted a 2020 executive order to permit retirement funds, including 401(k)s, to invest in high-risk private equity. This move follows efforts to increase retail investor access to private investments like hedge funds and real estate.

Regulatory enforcement has declined sharply, with SEC actions hitting a decade-low of 313 in FY 2025, including only four actions against public companies. Additionally, Donald Trump issued more than 88 individual pardons in 2025, with over half granted to wealthy individuals convicted of financial crimes. These pardons potentially eliminate hundreds of millions of dollars in fines and restitution.