Employees of the SEC and the Commodity Futures Trading Commission return to work after the government shutdown.

Employees of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will return to work on Thursday after being on leave for 43 days due to the U.S. government shutdown. Previously, U.S. President Donald Trump signed a funding bill on Wednesday night to restore the operation of the federal government. Both agencies' operational plans stipulate that employees should return to their posts on the next normal working day after the funding bill takes effect. CFTC acting chair Caroline Pham confirmed this detail on Thursday in a post on X. During the government shutdown, both the SEC and CFTC operated with reduced staff and limited functions. The SEC's ability to review applications for exchange-traded funds (ETF), including those related to Crypto Assets, was significantly impacted. The CFTC's operations also basically came to a halt, with enforcement, market regulation, and regulatory rulemaking all affected. With the government reopening, it is expected that both agencies will need time to process registration applications and other work submitted during the shutdown. Some companies took advantage of the government shutdown to submit applications for initial public offerings (IPO) and exchange-traded funds (ETF), anticipating the end of the shutdown. Jay Dubow, a partner at Troutman Pepper Locke, pointed out that some companies may knowingly submit applications that will not be reviewed immediately, but at least they can enter the review queue, still submitting applications to the SEC. He also emphasized the risks posed by repeated shutdowns, noting that some important matters may be overlooked. During the government shutdown, officials from both agencies still spoke at meetings discussing their attitudes towards Crypto Assets and how to cope with operational restrictions. On October 7, SEC Chairman Paul Atkins spoke about the agency's limited functions at a meeting, emphasizing the restrictions on employee activities. Before the funding bill was passed, Atkins mentioned that the SEC planned to consider establishing a token classification system based on the howey test, aimed at recognizing that investment contracts can be effectively established. Likewise, Pham stated that the CFTC has been actively pushing for the approval of leveraged spot Crypto Assets trading before December. Meanwhile, SEC Crypto Assets working group chief legal advisor Michael Selig will attend a hearing of the Senate Agriculture Committee, part of President Trump's confirmation plan for him to serve as the next CFTC chair. Although the hearing could have been held during the government shutdown, if Selig is confirmed, his powers will be limited. If Selig is confirmed, Pham is expected to step down from her role as acting chair, but the CFTC will still face leadership challenges.