Will the XRP charge end soon? SEC braces for ‘possible’ shutdown
The SEC is preparing for a possible government shutdown, focusing on important functions such as market integrity and investor protection. His EDGAR database still exists, but some non-essential work stops there. Although the SEC's operations may suffer, the agency will prioritize its core mission of regulating market activities and protecting investors, especially during uncertain times.
Attorney Jeremy Hogan responded to the news, writing: “Dear SEC, now may be a good time to file for stays on all non-fraud litigation without harming any close investor. In fact, with both the impending shutdown and new management, this may be the only ethical thing to do. Really Jeremy. This news comes as cases like Ripple's are on the rise, but it's still unclear how these cases will be affected by the shutdown.
What happens next if the SEC shuts down?
If the government shuts down, the SEC will have limited functions because federal agencies can't operate without funding, except for a few things like safeguarding assets. Companies attempting to raise funds or process securities transactions should be aware that the SEC's corporate finance staff will not be available to approve registration statements, issue statements, or process those documents.
The SEC does not process filings that require review, such as registration statements or tender offers. Companies do not receive feedback on their applications and the delay occurs once the closing is over. The SEC will not answer questions or accept requests for exemptions or no-action letters.
Gary Gensler previously announced his retirement from the SEC on January 20th. President-elect Donald Trump has nominated Republican and former SEC Commissioner Paul Atkins to replace him. Atkins, a prominent Washington conservative, takes over from Gensler, who was an aggressive SEC chairman under President Joe Biden.
