US Government Shutdown Ends: SEC and CFTC Employees Return to Work
After a 43-day absence, employees of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are expected to return to work, following the signing of a funding bill by President Donald Trump to restart federal operations. According to operating plans, staff are set to report to work on the next regular workday after the passage of the budget bill, as confirmed by acting CFTC Chairwoman Caroline Pham in a recent post.
The government shutdown had significantly impacted the operations of both agencies, with reduced staff and limited activities. The SEC’s ability to review applications for exchange-traded funds (ETFs), including those related to cryptocurrencies, was severely limited. Similarly, the CFTC’s plan called for the cessation of most operations, including enforcement, market oversight, and regulatory rulemaking work. 
Impact on Cryptocurrency-Related Activities
As the government reopens, the SEC and CFTC may need some time to catch up on pending activities, such as reviewing registration applications filed during the shutdown period. Some companies had submitted initial public offering (IPO) and ETF applications despite the shutdown, with the expectation that they would be reviewed once operations resumed. According to Jay Dubow, partner at law firm Troutman Pepper Locke, “I’m sure some [companies] took the position that they could simply submit [an application to the SEC]… I know it won’t be reviewed until they come back, but at least they’re in the queue.” However, Dubow also warned of potential consequences, stating, “Any time you go through something like this, there’s a risk of things falling through the cracks in different ways.”
During the shutdown, officials from both financial regulators continued to engage with the public, speaking at conferences and commenting on their approach to cryptocurrencies. SEC Chairman Paul Atkins noted, “We are obviously still functioning to some extent… There are restrictions on what we can and cannot do, particularly for staff… I can still come and do things like that [referring to the conference].” Atkins also mentioned that the SEC would consider implementing a token taxonomy in the coming months, anchored in the Howey test, to recognize that “investment contracts may expire.”
Leadership Changes and Upcoming Senate Hearing
Meanwhile, Michael Selig, chief counsel to the SEC’s crypto task force, is scheduled to appear before the Senate Agriculture Committee as part of President Trump’s effort to get him confirmed as the next CFTC chairman. If confirmed, Selig’s authority over the agency would have been severely limited had the hearing taken place during the shutdown. Acting Chairwoman Pham is expected to resign if Selig is confirmed by the Senate. However, even with a new chairman, the CFTC would still face a leadership deficit, with only one Senate-confirmed commissioner out of the usual five commissioners.
For more information on the impact of the government shutdown on the SEC and CFTC, and the latest developments in cryptocurrency regulation, visit Cointelegraph.
