A recent watchdog report highlights concerns that the Trump administration is becoming lenient toward corporations breaking the law, by suspending or abandoning investigations into companies accused of foreign bribery, safety violations, unfair labor practices, and environmental crimes. These shifts in enforcement across several agencies coincide with President Trump’s efforts to realign federal priorities, emphasizing issues like border and national security over other areas, NPR reports. In just over a month, the new administration has paused or attempted to drop investigations or cases involving at least 89 companies, as reported by the nonprofit group Public Citizen. This represents a quarter of the major investigations and enforcement efforts the group was tracking under the Biden administration. "Trump is handing 'get out of jail free' cards to corporate lawbreakers," said Rick Claypool, research director at Public Citizen. "The consequences for the public when corporations face a diminished threat of enforcement are disastrous."
New officials at the Justice Department, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, and the Consumer Financial Protection Bureau have quickly shifted priorities. "The Department of Justice remains committed to vigorously enforcing federal law and holding criminals accountable," a spokesperson stated in a written response to NPR. Last month, the president signed an executive order halting the enforcement of the Foreign Corrupt Practices Act, arguing that the post-Watergate law, which prohibits American businesses from bribing foreign officials, interferes with U.S. national security interests. In another significant move, the new SEC is stepping back from regulating cryptocurrency businesses. On Monday, Kraken, a major cryptocurrency exchange, announced that the SEC had agreed in principle to drop a case accusing it of operating as an unregistered securities exchange, without imposing any penalties. "We appreciate the new leadership at both the White House and the Commission that led to this change," Kraken said in an online statement. Last week, the administration also agreed to dismiss a case against Coinbase, another cryptocurrency exchange that had spent millions on political donations during the 2024 election cycle.
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