'Make IPOs great again': SEC chair explains new rule for IPOs during shutdown

Core Insights - The SEC chair, Paul Atkins, highlighted the negative impact of the government shutdown on IPO processing and expressed a desire to revitalize the IPO market [1][2] Group 1: SEC Operations and Staffing - The SEC's staffing has drastically reduced from over 4,200 employees to fewer than 400 due to the government shutdown, limiting its ability to monitor markets effectively [2] - The SEC currently oversees about half the number of public companies compared to 30 years ago, indicating a significant decline in market oversight capacity [2] Group 2: IPO Processing Changes - Atkins mentioned a rule from the Securities Act of 1933 that allows companies to go public after a 20-day waiting period, which was utilized to approve two IPOs last week [4][5] - Approximately 20 companies had already engaged in discussions with SEC staff and were able to expedite their IPO process by withdrawing delaying amendments [5] Group 3: Future IPOs and Market Monitoring - Atkins indicated that there may be more companies going public soon, with one potentially happening the following day [7] - The SEC aims to ensure that corporate malfeasance is still monitored, emphasizing that the expedited process is for companies that are already prepared to go public [7] - The SEC is open to accepting companies with bylaws that include mandatory arbitration or fee-shifting provisions, which may encourage more firms to go public [11]