XRP Lawsuit To End Soon? SEC Prepares For ‘Potential’ Shutdown
The U.S. Securities and Exchange Commission is preparing for a possible government shutdown, focusing on essential functions such as market integrity and investor protection. Its EDGAR database remains available, but some non-essential operations will be suspended. While the SEC’s operations may be affected, the agency will prioritize its primary mission of monitoring market activity and protecting investors, especially during times of uncertainty.
Attorney Jeremy Hogan reacted to the news and wrote: “Dear SEC, Now may be a wise time to file for a stay of all non-fraud litigation that does not cause imminent harm to investors. In fact, With a government shutdown looming and a new administration in place, this might be the only ethical thing to do, really, Jeremy. “This news comes as cases like Ripple’s are evolving, but not yet. Be clear about how these cases will be affected by the closure.
If the SEC shuts down, what happens next?
If the government shuts down, the SEC’s activities will be limited because federal agencies cannot operate without funding, except for a few things like protecting property. Companies trying to raise capital or process securities transactions should be aware that the SEC’s corporate finance staff will not be able to approve registration statements, offering statements or process these documents.
The SEC does not process documents that require review, such as registration statements or tender offers. Companies won’t get feedback on their filings, and delays will occur once the shutdown ends. The SEC does not answer questions or process exemption requests or no-action letters.
Gary Gensler previously announced that he would retire from the SEC on January 20. President-elect Donald Trump nominated Republican and former SEC Commissioner Paul Atkins to replace him. Atkins, a prominent Washington conservative insider, will succeed Gensler, who has served as chairman of the activist SEC under President Joe Biden.
