SEC Faces Mounting Backlog With 91% of Staff Furloughed, Based on Agency Shutdown Plans

Ryan Adams was quoted in The National Law Journal discussing the operational challenges facing the U.S. Securities and Exchange Commission during the ongoing federal government shutdown.

With 91% of SEC staff furloughed, Ryan noted that the longer the shutdown continues, the greater the risks for market oversight and regulatory stability. “The longer the shutdown extends, the more opportunity there is for problems,” he said.

He also warned that staffing reductions could worsen the backlog when the agency eventually reopens: “It’s certainly not outside the realm of possibility that they could come back with less people to deal with the backlog.”

Despite the shutdown, Ryan expressed confidence in the SEC’s institutional resilience, noting that experience from past shutdowns provides a foundation for recovery. “One silver lining to the fact that we've had numerous shutdowns in the past decade is that, at least with every shutdown, you get more experience in dealing with it and then reintegrating when everyone comes back online.”

Still, Ryan underscored the enforcement risks created by reduced oversight capacity, remarking, “It’s like the police office has shut down.”

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