“US financial regulators start shuttering as federal funding runs out … the SEC will furlough over 90 % of its workforce … the CFTC will operate with about 5.7 % of staff … regulatory functions like IPO reviews, crypto ETF filings, market oversight will be impacted.” Reuters
Because Congress hasn’t passed funding, several key U.S. financial oversight agencies have started to furlough personnel. The SEC plans to furlough more than 90 % of its staff — leaving only a skeleton crew handling emergency enforcement and market surveillance. The CFTC is also drastically reduced, running at just 5.7 % capacity. The result: delays in IPO reviews, crypto ETF applications, and routine filings — weakening regulatory oversight at a time when markets are already jittery. Investors should brace for increased volatility as the usual checks and balances take a hit.
Implication: With regulators scaled back, opportunistic actors may exploit loopholes. It’s riskier than usual — especially in sectors like crypto, SPACs, or unregulated lending.
Credit & link: Originally reported by Reuters — “US financial regulators start shuttering as federal funding runs out” Reuters