Enforcement discretion is the power of a regulatory agency or prosecutor to choose when, how, and whether to bring enforcement actions, and on what terms to resolve them. Courts and Congress grant agencies wide latitude in these decisions because enforcement resources are finite and priorities must be set. In the SEC context, enforcement discretion includes choosing whether to require admissions of wrongdoing, accept no-admit/no-deny settlements, or pursue full litigation — decisions that shape deterrence, investor protection, and institutional credibility.