MapLight becomes 1st IPO to self-file during US government shutdown
The US government shutdown that began October 1, 2025, has paused the SEC's review of new IPOs.
Still, companies aren't totally stuck—some can move ahead by self-approving their registrations.
Biotech startup MapLight became the first company to file for a listing under the provision late on Monday, despite the regulatory freeze.
What is the '20-day registration rule?'
Normally, companies need SEC approval before listing shares.
But during a shutdown, the "20-day registration rule" lets them set an IPO price and go public after 20 days—without waiting for SEC sign-off.
This trick helped firms like Gossamer Bio and New Fortress Energy get listed during the 2018 shutdown.
SPACs love this rule
SPACs (Special Purpose Acquisition Companies) love this rule because their value is based on money raised—not business performance—so they're less dependent on SEC reviews and can keep moving even when things are stalled in Washington.
If the shutdown drags on, more biotech firms might follow suit
With over 90% of SEC staff furloughed, there's a bigger risk of missed disclosures or investor concerns.
To manage this, companies are leaning more on their own legal and financial teams for checks.
Analysts think more biotech firms needing fast cash could use this route if the shutdown drags on.