The issue of a radical overhaul of the SEC's structure and even its mission has been a fairly big issue as of late. Recall that Section 967 of  Dodd-Frank required that the SEC hire a consultant to look broadly at the organizational and other woes of the agency, which all would agree are severe.

The subsequent report by the Boston Consulting Group recommended a wide array of reforms that are now being revived to some degree by an attempt to legislatively impose reform on the SEC. According to Reuters, Rep. Spencer Bachus, chairman of the House Financial Services Committee, plans to introduce a bill that would "consolidate offices and divisions, shore up ethics guidelines for SEC employees, and address conflicts of interest that could arise from the ‘revolving door' of people who go from the commission to often high-earning jobs on Wall Street."

Among other things, the SEC Modernization Act would get rid of the agency's Office of Compliance, Inspections and Examinations and merge its staff into the agency's trading and markets and investment management divisions. The office was roundly criticized in 2009 for its failures to detect Bernard Madoff's Ponzi scheme. The proposal would also jettison the Division of Risk, Strategy and Financial Innovation, a new division created in the wake of the financial crisis tasked with staying abreast of systemic risk. For all its woes, no one is calling for the death penalty, that is, an end to system as we know it. Recall the fate of the old INS, which was essentially dealt a death blow as it was legislated into oblivion in 2003. It's duties were parceled out to other agencies.

For more:
- here's the article

Related articles:
SEC approves, delays registration requirement for funds  
Dodd-Frank rules on OTC derivatives to be delayed  
SEC hires top economist to critical regulatory post