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The United States Securities and Exchange Commission (SEC) is preparing for a potential government shutdown due to the lack of funding approval from Congress. If a shutdown occurs, the agency will have to scale back operations significantly.
In such a scenario, the SEC’s offices would close, and most employees would be furloughed without pay. This means that the commission would not be able to perform routine tasks like reviewing new ETF applications or providing guidance on regulatory matters.
The SEC would only continue essential services in case of a shutdown, including emergency operations and law enforcement activities. However, even these critical functions might be impacted if funds are not allocated by lawmakers.
A government shutdown could have far-reaching consequences for the financial markets and economy as a whole. It may lead to increased uncertainty among investors and traders, potentially causing market volatility.
Meanwhile, in other news, anti-crypto SEC Commissioner Caroline Crenshaw is likely preparing to leave the agency after senators failed to vote on her renomination earlier this week. This development could have significant implications for the crypto community as it will leave only Republican commissioners at the SEC.
In related news, Paul Atkins, a well-known crypto-friendly libertarian, has reportedly been selected to replace Gary Gensler in early 2025. This move could significantly alter the SEC’s stance on digital assets and potentially pave the way for more favorable regulations.
The agency will require two Democratic appointments to maintain its bipartisan nature. It is unlikely that Crenshaw would be reappointed in this scenario, as she has been a vocal critic of certain crypto projects.
As reported by U.Today, the SEC’s future outlook remains uncertain amid these developments.
Source: u.today
