In an unusual move triggered by the ongoing government shutdown, the U.S. Securities and Exchange Commission (SEC) announced on Thursday that companies can proceed with initial public offerings (IPOs) using an automatic approval process, now allowing firms to skip including pricing information entirely.

With 90% of SEC staff furloughed, startups can file their IPO paperwork and have it automatically become effective after 20 days. While this automatic process has existed for years, it was rarely used because most companies preferred SEC reviewers to check their disclosures before going public.

The key change now is that the SEC will not penalize companies for omitting pricing or price-dependent information during the shutdown, making this workaround more attractive. Essentially, IPO vetting will occur after shares have already been purchased by retail investors, raising questions about investor protection — though companies remain legally liable for their disclosures, and the SEC retains the right to require amendments later.

This temporary measure provides a path for startups to access public capital markets despite staffing shortages at the SEC, but it also underscores the unusual risks for investors participating in IPOs under these conditions.