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Thousands of U.S. Securities and Exchange Commission employees stepped back into the office Thursday after weeks of forced silence — a return that experts say will ignite at least a month-long scramble to claw through a mountain of suspended cases, frozen investigations, and IPO submissions stacked like aircraft on a jammed runway.

For most of the SEC’s roughly 4,200 furloughed workers, all operations had gone dark. Only 393 employees remained active during the shutdown, tasked with guarding the core integrity of U.S. markets and preventing threats that could jeopardize life, property, or investor trust.

“Throughout the shutdown, essential personnel carried out critical work to protect market stability and hold wrongdoers accountable,” an SEC spokesperson said in an email Thursday. “Now, we will refocus on the most urgent issues affecting American investors and market participants.”

Yet for companies and individuals navigating pre-shutdown dealings with the agency, the work never truly paused — even if no one was on the receiving end.

‘Pencils Down’ for Some, Business as Usual for Others

James Lundy of Foley & Lardner LLP described clients split between those who froze all production and those who kept sending documents into the void, unsure if anyone at the SEC was present to read them.

“I’m not rushing them today or tomorrow,” Lundy said, noting that outreach will likely begin next week.

Those Under Investigation May Need to Move Quickly

Jay Dubow of Troutman Pepper Locke LLP warned that individuals and companies under investigation before the shutdown — but who had not yet been threatened with litigation — may need to accelerate their defense strategies now that the agency is back in motion.

A Wells notice, he noted, triggers disclosure obligations for public companies and starts the countdown for the SEC’s response timeline.

But staff has more wiggle room if the notice hasn’t been issued.
“In some cases, staff may consider a pre-Wells discussion or a white paper,” Dubow said — a more flexible, narrative-style submission aimed at dissuading the SEC from pursuing an enforcement action.

Litigation Fires Back Up

Most active litigation had been effectively frozen. Lundy said some cases could reopen as early as next week, depending on the presiding judge’s preference.

“Once you’re in litigation, it’s no longer just about what the SEC wants,” he said. Defense counsel will often push aggressively to restart the clock and regain momentum.

IPO Filings: A Traffic Jam of Historic Proportions

Companies hoping to go public — or even just seeking review for new stock issuances — continued preparing filings during the shutdown, creating a tidal wave of paperwork now hitting SEC desks all at once.

The Division of Corporation Finance issued guidance Thursday outlining how it plans to sift through more than 900 registration statements submitted during the shutdown.

A Crucial Break for Companies Already in the Pipeline

Unlike previous shutdowns, companies already in the middle of their IPO review process will not need to reset the clock with a delaying amendment, according to Scott Kimpel of Hunton Andrews Kurth LLP.

“One less hurdle,” Kimpel said. “They’re trying to lighten their own workload as they face nearly seven weeks of accumulated filings.”

Still, Kimpel expects it will take one to two months to clear the queue — not counting the new filings pouring in every day.

“Everyone needs to understand: nothing is going to move quickly,” he said. “There’s a five- or six-week line in front of you.”

Some Filings May Get Fast-Tracked — Maybe

While the Division promises a strict first-come, first-served approach, Andrew Schulte of Baker Botts LLP noted that the SEC has historically made room for urgent transactions.

“IPOs, for instance,” Schulte said. “It wouldn’t shock me if certain deals get nudged forward.”