WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy, issued the following statement in connection with Better Markets’ new Report, “The SEC’s Whistleblower Program Is Key to Protecting the Economy and Main Street Americans’ Wallets”:

“The US capital markets are the engine that fuels our economy, businesses, jobs, and standard of living. And our capital markets thrive because investors trust them. So the foundation of those markets is investors’ belief that they are well-regulated and well-policed. That’s why the Securities and Exchange Commission (SEC), the leading regulator of the capital markets, is so important. However, the SEC can’t do it alone, which is why the SEC’s whistleblower program was created: to incentivize those who are aware of lawbreaking in the markets to come forward and help the SEC do its job stopping lawbreaking and protecting investors and markets. Fortunately, as discussed in our new report, by any measure the SEC’s whistleblower program has been a resounding success.”

“That success may become increasingly important if the new administration’s attempts to cut the size of the federal workforce, through the Department of Government Efficiency (DOGE) and otherwise, reach the SEC and its enforcement division. Fewer enforcement personnel at the SEC would be a disaster for investors. The SEC is already underfunded, and any actions DOGE took to further reduce the SEC’s enforcement capabilities would only make it even harder to police the markets and would force greater reliance on private actors. So, if the SEC doesn’t have the resources it needs, it will have to rely more heavily on whistleblowers to identify misconduct. That means the SEC’s whistleblower program will become even more essential to investor protection than it already is today.”

You can find the report here.