Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > US financial regulators start shuttering as federal funding runs out
Economy

US financial regulators start shuttering as federal funding runs out

Last updated: October 3, 2025 12:51 pm
Share
US financial regulators start shuttering as federal funding runs out
SHARE

WASHINGTON (Reuters) – U.S. market regulators initiated the process to furlough employees on Wednesday as a government shutdown ensued after Congress failed to extend funding. This disruption is affecting critical oversight duties, impeding initial public offerings, and restricting access to certain market and economic data.

The shutdown commenced at midnight as Congress remained at an impasse regarding funding legislation. This will result in the Securities and Exchange Commission (SEC) laying off over 90% of its workforce, keeping only about 393 employees on hand for emergency enforcement actions and monitoring of market activities, as outlined in its contingency provisions.

As reported by Reuters, the agency responsible for regulating countless listed firms, exchanges, broker-dealers, and funds informed its employees on Tuesday evening to brace for the shutdown.

The Commodity Futures Trading Commission (CFTC), which oversees derivatives markets, intends to function with merely 5.7% of its staff of 543, who will remain available to maintain market oversight and prevent fraudulent activities, as detailed in the CFTC’s published plan on Tuesday evening.

Historically, markets have largely ignored previous brief shutdowns; however, an extended closure could delay or even cancel the publication of crucial economic statistics that investors rely on to evaluate macroeconomic trends, potentially leading to asset price fluctuations. On Wednesday, Wall Street futures and the dollar experienced declines, while gold prices surged to record levels.

Standard SEC filings from companies will go on as usual, but the agency will not be equipped to process new IPOs, which may inhibit the recent resurgence in the IPO market.

See also  First Lady Melania Trump’s Message to Federal Trade Commission Underscores Commitment to Child Protection Online – The White House

“A shutdown prompts investors to reconsider their participation in new deals amid heightened political instability,” remarked Samuel Kerr, who leads equity capital markets at Mergermarket.

“Immediate repercussions include a decline in investor confidence, alongside a longer-term effect of obstructing the IPO pipeline.”

With the SEC’s Division of Trading and Markets unable to review pending submissions, a prolonged shutdown could also defer the anticipated approvals for various crypto exchange-traded fund products planned for the upcoming weeks, according to the agency’s shutdown strategy. Analysts had predicted that ETFs linked to cryptocurrencies like Solana and XRP would launch in early October.

Congresswoman Maxine Waters, the leading Democrat on the House Financial Services Committee, emphasized the constraints faced by market regulators during the shutdown, cautioning in a statement that it “leaves financial markets and investors exposed at a time when robust oversight is crucial.”

U.S. banking regulators, such as the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), will continue their operations without disruption since their funding is not dependent on congressional approvals. These agencies issued a statement on Wednesday reminding banks that they are permitted to issue loans that typically would necessitate flood insurance, even though the National Flood Insurance Program, which provides this insurance for new loans, has largely ceased operations.

TAGGED:Federalfinancialfundingregulatorsrunsshutteringstart
Share This Article
Twitter Email Copy Link Print
Previous Article Netflix Sets Cast for Coming of Age Drama Series ‘The Body’ Netflix Sets Cast for Coming of Age Drama Series ‘The Body’
Next Article Taylor Swift Says 'Wi$h Li$t' Is About Her Desire to Have Kids With Travis Taylor Swift Says 'Wi$h Li$t' Is About Her Desire to Have Kids With Travis
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

KCON Draws K-pop Fans to Downtown L.A. for Festival and Concerts

KCON, the annual three-day festival celebrating Korean music and culture, is drawing K-pop fans of…

August 2, 2025

Ageing in the brain may be caused by a breakdown in protein production

A ribosome (centre) producing a protein (red) from mRNA. The dark purple strands represent transfer…

August 3, 2025

Countering Domestic Terrorism and Organized Political Violence

NATIONAL SECURITY PRESIDENTIAL MEMORANDUM/NSPM-7 MEMORANDUM FOR THE SECRETARY OF STATE                THE SECRETARY OF THE…

September 25, 2025

Most Dangerous States-Criminal Victimization By State

The NCVS data is the most reliable source of information on crime trends because it…

September 20, 2025

Sheryl Lee Ralph Drops Wisdom, Receives Hollywood Walk of Fame Star

Sheryl Lee Ralph, the iconic actress, is finally getting her long-awaited spot on the Hollywood…

April 17, 2025

You Might Also Like

Dan Ives’ AI ETF Hits B in Assets Just Five Months After Launch
Economy

Dan Ives’ AI ETF Hits $1B in Assets Just Five Months After Launch

October 31, 2025
Is This The Best ETF to Invest In Ahead of Potential AI Bubble Burst?
Economy

Is This The Best ETF to Invest In Ahead of Potential AI Bubble Burst?

October 31, 2025
Alphabet hikes capex again after earnings beat on strong ad, cloud demand
Economy

Alphabet hikes capex again after earnings beat on strong ad, cloud demand

October 31, 2025
What is a merchant bank?
Economy

What is a merchant bank?

October 30, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?