Gov't Shutdown Essentially 'Freezes' IPO Market, Attys Say

Ryan Adams was featured in Law360 discussing the severe impact of the ongoing government shutdown on U.S. capital markets and the SEC’s ability to process IPOs.

Ryan noted that, despite the SEC technically remaining open, staffing shortages have effectively “frozen the IPO market.” He explained that while companies can still file registration statements through the SEC’s EDGAR system, “it’s a really big risk that I think most companies are not going to want to take. Realistically, it is almost impossible to conduct a traditional IPO.”

The article highlights how the shutdown has left companies unable to obtain staff review, declare registration statements effective, or receive interpretive advice — creating major delays for IPO candidates. Ryan pointed out that deals currently “can’t really go anywhere until the SEC staff comes back and the government reopens.”

Reflecting on prior shutdowns, Ryan added that while SEC staff returning to work will face a significant backlog, there may be a silver lining: “As we have more and more shutdowns, at least we have staff who have lived through this before and know exactly what to do.”

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