SEC Says It’s Investigating Stock Mania for Potential Misconduct

The U.S. Securities and Exchange Commission, facing intense pressure to respond to the recent mania in the stock market, said it’s seeking to identify potential misconduct and will scrutinize brokerages’ decisions to halt buying that triggered a retail-investor revolt.

The SEC warned traders about engaging in illegal schemes to drive up share prices and said it was working with other regulators, stock exchanges and federal agencies to “identify and pursue potential wrongdoing,” according to a statement released Friday by acting chair Allison Herren Lee and the agency’s commissioners.

The SEC leadership added that the agency “will closely review actions ...