SEC Preparing for Shutdown

The U.S. Securities and Exchange Commission (SEC) is currently preparing for a potential federal government shutdown, according to its recent alert. 

The agency has announced that it will prioritize crucial functions such as market integrity and investor protection. 

The agency has clarified that its internal EDGAR database system, which is used for tracking government filings, will remain operational. 

However, the agency will be forced to pause some non-essential operations during a potential government shutdown. 

On Wednesday, the House of Representatives delayed a vote on a bipartisan government funding bill, prompting concerns about a potential shutdown. 

With Congress plunging into chaos, it looks like another government shutdown is likely. It would leave government workers unpaid during the holidays while also disrupting various services such as food assistance. 

Only essential services, such as emergency operations, will continue in case of government shutdown. However, they might also face significant challenges. 

The SEC will likely cease performing routine reviews of various filings, including ETF applications. However, it will still be able to prosecute cases involving fraud and market manipulation. 

In other news, anti-crypto SEC Commissioner Caroline Crenshaw is highly likely preparing to leave the agency after senators failed to vote on her renomination earlier this week. 

The agency will be left with three Republican commissioners. As reported by U.Today, crypto-friendy libertarian Paul Atkins is on track to replace Gary Gensler in early 2025. 

Two Democratic commissioners will have to be appointed to make sure that the agency remains bipartisan, but Crenshaw is extremely unlikely to be one of them.