Quarter 2, 2025 SEC enforcement newsletter: Insights from Reed Smith

In recent years, Christine Morgan was recognized as a California Leader in Tech Law, acknowledging her role in handling groundbreaking and law-shaping work within the tech industry. This prestigious award highlights the significant contributions made by women lawyers who are pioneers in their field and facilitate significant advancements in and around the tech sector.

Similarly, PitchBook has identified Reed Smith as one of the top firms in 22 Global League Tables for deal volume. The firm has consistently ranked in the top 25 across various categories such as M&A and private equity deals, solidifying its position as one of the most active participants in private capital markets. This recognition underscores the firm’s commitment to excellence and its consistent involvement in high-profile transactions within the global market.

Despite the tumultuous events of the previous year that saw the U.S. Securities and Exchange Commission (SEC) filing a record number of enforcement actions and imposing unprecedented penalties, a shift in priorities was anticipated with the change in administration. The SEC has been clear about its focus on traditional core enforcement areas, emphasizing insider trading, accounting and disclosure fraud, market manipulation, and breaches of fiduciary duties by investment advisers.

During SEC Speaks 2025, there was a strong emphasis on a return to basic enforcement principles and a commitment to individual accountability in cases that harm investors or involve foreign actors. Recent actions by the SEC reflect this renewed focus, with notable cases such as SEC v. Safi highlighting the agency’s pursuit of international insider trading schemes. The case involved individuals from various countries engaging in illicit activities to generate substantial profits, underscoring the SEC’s dedication to combating financial crimes across borders.

The SEC’s enforcement priorities underscore the importance of safeguarding material nonpublic information and implementing robust policies to prevent insider trading. Companies must remain vigilant in monitoring potential risks associated with cross-border transactions and enforce strict compliance measures to prevent illegal activities within their organizations. The regulatory landscape is evolving, and firms like Reed Smith are at the forefront of navigating complex legal and financial matters, ensuring compliance with regulations and maintaining the highest standards of professional integrity.