Key Financial Regulators Cut Staff As Shutdown Begins

Benzinga

The U.S. government shutdown forced regulators like the SEC and CFTC to furlough most staff, halting IPO approvals and delaying crypto ETF decisions. Bank regulators remain open, but oversight gaps raise risks of fraud and volatility. Markets reacted with gold hitting record highs as futures and the dollar weakened.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02U.S. market regulators began furloughing workers on Wednesday after Congress failed to pass funding,

00:08shutting down the government, and curtailing oversight, according to Reuters.

00:13The SEC will furlough more than 90% of its staff,

00:16retaining about 393 employees to handle emergency enforcement and surveillance.

00:22The CFTC will operate with 5.7% of its 543 staff

00:28during the shutdown to maintain market oversight and prevent fraud and abuse.

00:33The shutdown halts processing of IPOs and delays approvals for crypto ETFs,

00:38threatening to derail a revival in listings.

00:41Bank regulators like the Fed and FDIC will remain open,

00:45though the National Flood Insurance Program has shuttered.

00:48Routine SEC filings will continue,

00:50but investors face uncertainty with market data releases paused, fueling volatility.

00:55Gold hit a record high as Wall Street futures and the Dollar Weekend.

01:00For all things money, visit Benzinga.com.

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