US regulatory enforcement in the financial sector has dropped sharply under the Trump administration, according to new findings from Wolters Kluwer.
The firm’s Regulatory Violations Intelligence Index reported that enforcement actions against financial services firms fell 37% in the first half of 2025 compared with the last six months of 2024,
The study also showed monetary penalties plunged by 32% across the three tracked categories: financial, consumer protection, and competition-related offences. Analysts attribute the shift to the administration’s rapid deregulatory agenda, which has seen significant changes to federal oversight and supervision.
“We’re witnessing a fundamental transformation in federal enforcement priorities,” Wolters Kluwer compliance management programme leader Chuck Ross said. “While deregulation was anticipated under the new administration, the velocity and magnitude of this enforcement pullback exceeds even the most aggressive predictions.”
According to the report, the administration’s weakening of oversight stems from efforts to roll back parts of the 2010 Dodd-Frank Act and dismantle the Consumer Financial Protection Bureau. Federal agencies such as the Securities and Exchange Commission and the CFPB have also redirected their approach, focusing on high-profile misconduct cases rather than broad regulatory enforcement.
“This isn’t just a modest adjustment—it’s a complete recalibration of the enforcement ecosystem,” Ross said.
The index revealed 99 enforcement actions during the first six months of 2025, a notable decline from the 158 recorded in the preceding period. Competition-related financial penalties, which cover antitrust and corruption violations, dropped by 97% following a four-month suspension in Foreign Corrupt Practices Act enforcement at the Department of Justice.
Elaine Duffus, regulatory compliance expert at Wolters Kluwer, said the retreat leaves the financial sector with more discretion in compliance matters. She warned that banks and boards now face the challenge of setting their own thresholds without as much federal guidance. “The good news is there’s not a lot of enforcement,” Duffus said. “The bad news is you have to figure out how to do this on your own in many cases.”
Ross cautioned that companies should not become complacent, highlighting that state authorities have been stepping in to fill the gaps left by reduced federal activity, particularly in consumer protection. “History shows us that enforcement pendulums swing,” he said. “Those who mistake the current deregulatory regime as the new normal do so at their own peril—especially as states fill the enforcement void.”
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