The latest action by the SEC? A good slumber at the right time. Thanks to the government shutdown, the agency is running on a skeleton crew but the markets, as usual, didn’t get the memo or don't care.
Section 8(a) now allows IPOs to take effect automatically after 20 days. Translation: Before the SEC even finishes its coffee, some businesses will go public. In the meantime, CAT reporting had a reprieve rules were loosened, data was reduced, and expenditures were reportedly reduced by $20 million. It is like Christmas arrived early for compliance teams, but without the excitement.
The worst part is that the SEC subtly indicated that mandatory arbitration agreements are now acceptable in securities lawsuits. "See you in arbitration" is the epitome of investor protection.
Despite this, the agency maintains that it has "minimally staffed" personnel. Since servers do not seem to form unions, EDGAR is still in use. Filers continue to file, attorneys continue to bill, and compliance officers continue to act as though nothing is wrong.
Bottom line: even when the SEC shuts down, regulation finds a way sometimes faster, cheaper, and with more irony than intended. If 2025 has taught us anything, it’s that Wall Street doesn’t need adult supervision to keep breaking things in style.
