The US Securities and Exchange Commission (SEC) announced that its enforcement director, Gurbir Grewal, will be stepping down from his role on October 11. Grewal, who has led the SEC’s 1,500-person enforcement division since July 2021, is leaving after a notable three-year tenure during which the agency intensified its oversight of Wall Street and cryptocurrency firms.
Grewal, a former New Jersey attorney general, is widely recognized for his aggressive approach to enforcement. His leadership saw the SEC tackle high-profile cases in the crypto sector, including lawsuits against major exchanges Binance and Coinbase for allegedly facilitating illegal offerings to retail investors. The agency also took action against FTX for its role in a multibillion-dollar fraud, as well as the exchange’s auditor for negligence.
In addition to his work in the crypto space, Grewal spearheaded a comprehensive investigation into Wall Street’s use of personal devices and apps, such as WhatsApp, for conducting business outside of official channels. This initiative, which began in 2021, resulted in over $2 billion in civil fines against major financial institutions including JP Morgan Chase, Goldman Sachs, and Morgan Stanley, and has continued to target hedge funds and private equity firms.
Grewal also oversaw enforcement actions involving high-profile figures, including legal battles with Elon Musk over the billionaire’s refusal to testify in the SEC’s investigation of his acquisition of Twitter (now X) and charges against investor Carl Icahn for disclosure violations.
Under his leadership, the SEC’s enforcement division initiated more than 2,400 enforcement actions, yielding over $20 billion in penalties and settlements. His departure marks a significant change for the agency as it navigates ongoing enforcement efforts in both traditional financial markets and the evolving crypto industry.
Deputy Director Sanjay Wadhwa will take over as acting director of the enforcement division, with Sam Waldon, the division’s chief counsel, stepping into the role of acting deputy director. Grewal is expected to move into private practice, according to sources familiar with the matter.
Reuters, Mint, and US Securities and Exchange Commission contributed to this report.
