The U.S. SEC provides regulatory relief for IPO companies during government shutdown

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) issued guidance on Thursday to provide regulatory relief for companies planning to go public that are affected by the government shutdown.

Under the new rule, companies that initiate an initial public offering (IPO) during the government shutdown are not required to include a specific offering price in the documents submitted to the SEC, a requirement that is typically a key part of the IPO process. Previously, IPO documents were usually subject to strict review by SEC staff to check for potential misstatements or unclear disclosures. This temporary measure is designed to help those companies that are caught in a regulatory stalemate due to the government shutdown to continue their listing process, alleviating the negative impact of the government closure on the capital markets.