SEC Chief Warns Government Shutdown Might Affect Financial Markets

A U.S. government shutdown would potentially disrupt the financial markets by limiting regulatory oversight and preventing companies from going public or raising offerings, Securities and Exchange Commission (SEC) Chair Gary Gensler has warned.

If Congress fails to approve funding legislation that President Joe Biden can sign into law by midnight on Sept. 30, the federal government will shutter, furloughing tens of thousands of workers and disrupting various services.

Under such a closure, the Wall Street watchdog could furlough 93 percent of its staff, meaning the SEC would have "a skeletal staff" to conduct elementary market oversight, Mr. Gensler told lawmakers during a House Financial Services Committee hearing on Sept. 27.