The SEC Needs To Step Up Its Enforcement Game. Political Pressure Is Focused Elsewhere.
Private, decentralized messaging platforms where user IDs are not tied to real world identities make it possible for public company executives to discretely disclose non-public information with select investors. Discord is one such example. It will be interesting to observe the SEC’s approach to enforcement under new Chairman Gary Gensler. The SEC is currently under pressure by Democrats to force companies to disclose more information around ESG (particularly around climate disclosures), as well as racial and gender diversity with little talk on the enforcement side. Enforcement was non-existent under former SEC Chairman Jay Clayton. Here is hoping incoming Chairman Gary Gensler takes enforcement more seriously than his predecessor – particularly as it relates to new anonymous communication technologies.