Vanguard has agreed to pay $106 million to settle charges from the SEC for allegedly misleading investors about the risks and tax liabilities of its retirement funds. This settlement will see the funds distributed to the affected investors, emphasizing the SEC's commitment to protecting investors during leadership changes, particularly as Chair Gary Gensler prepares to step down. The SEC accused Vanguard of providing inaccurate information about its Institutional Target Retirement Funds (TRFs), which caused some investors to face higher tax liabilities and reduced returns. Corey Schuster, Chief of the SEC’s Asset Management Unit, stressed the importance of “materially accurate information” for investors planning their retirements, urging firms to communicate risks and consequences transparently. Vanguard, one of the largest ETF issuers, has largely stayed away from crypto ETFs, which may have insulated it from scrutiny in the past. Even the SEC's approval of Ethereum ETFs did not prompt Vanguard to enter the crypto market, unlike its competitors. However, the recent charges indicate a shift in Vanguard's regulatory interactions. The settlement comes at a critical time as the SEC undergoes a leadership transition. Gensler, known for his aggressive enforcement actions, will resign soon, and his departure could lead to a less combative approach to crypto-related cases. Earlier today, in what may be his final action as chair, the SEC fined DCG. It remains to be seen how his successor, likely Paul Atkins, will handle Vanguard and other firms with limited crypto ties. Vanguard’s CEO, who previously spearheaded BlackRock’s Bitcoin ETF initiative, has positioned the company to avoid direct involvement in crypto ETFs. However, its institutional connections to cryptocurrency may still invite scrutiny under a new SEC regime. Whether the SEC will pursue further action against Vanguard under Atkins will provide insight into the agency’s stance post-Gensler. This settlement could also serve as a test case for the SEC’s future approach. If no additional charges are filed against Vanguard, it might signal leniency under the new leadership. Conversely, if further action is taken, it will suggest that even minimal ties to crypto won't exempt firms from closer examination. While the current allegations against Vanguard are unrelated to cryptocurrency, this case may set the tone for the SEC's future enforcement priorities as the agency adapts to leadership changes.