The US Securities and Exchange Commission (SEC) is preparing for a possible federal government shutdown, as shown in its recent notice.
The agency put up an “SEC Operational Status” notice on its website, noting it’s preparing for a potential shutdown.
“In the event of a federal government shutdown due to a lapse in appropriations, the SEC’s operating status will change concurrently with the rest of the federal government, in accordance with the agency’s plan for operating during a shutdown,” the notice reads. “As that plan contemplates, we are currently preparing for a potential shutdown, with a focus on the market integrity and investor protection components of our mission.”
Key operations to continue
The SEC has stated that the EDGAR database system that helps in tracking government filings will not be affected by the shutdown. However, routine reviews like those involving the ETF applications will likely be put on hold for now.
Nonetheless, the SEC will still be able to take action against fraud and market manipulation; thus, there will be no complete absence of enforcement. The House of Representatives’ failure to vote on a bipartisan government funding bill has only increased the chances of a shutdown.
As Congress fails to come up with a solution, services such as emergency services may be greatly affected, and non-essential federal employees may not be paid during the holiday season. Other essential services that are likely to be affected include food aid programs.
Crypto advocacy group urges SEC reset
In a related development, the Digital Chamber of Commerce has called on the SEC to change its approach to digital assets. The organization claims that the relationship should be rebuilt as Donald Trump is expected to become the president and may adopt a more positive approach to cryptocurrencies.
They noted that the new administration may promise to adopt a relatively less stringent regulatory stance than the current chair of the SEC, Gary Gensler.
Recently the Token Alliance Leadership Committee of the Chamber met with the SEC commissioners to discuss its 2025 Digital Asset Policy Priorities.
The proposal outlines how the new administration should address crypto issues in the first 90 days of Trump’s administration. The Chamber also pointed out that SAB121 and other available regulatory guidance were inadequate and adverse.
Gensler, who announced his resignation recently, was accused of adopting enforcement-focused approaches. According to reports, Paul Atkins will succeed Gary Gensler as the SEC Chair in early 2025.
Read the full article here
