What the Clarity Act Could Mean for the IPO Market

Chris McMahon on Fox Business – ‘Mornings with Maria’

During a recent appearance on Mornings with Maria on Fox Business Network, Chris McMahon joined the discussion on regulatory clarity, government shutdown risks, and how those dynamics intersect with the IPO pipeline. The conversation focused on how policy and governance mechanics—not market enthusiasm alone—shape the practical environment for companies considering going public.

• Regulatory clarity plays a meaningful role in determining how smoothly companies can access public markets.
• Government shutdowns can create operational backlogs that slow the IPO process.
• Even when demand exists, the path to going public can narrow significantly under policy uncertainty.
• Governance questions between regulators can delay broader market recovery efforts.

Public market access depends on more than investor interest. Regulatory processes, agency coordination, and political dynamics all influence whether IPOs can move forward efficiently. Understanding these structural factors helps investors better interpret why IPO activity may accelerate or stall—even in periods of strong underlying demand.

What is the Clarity Act intended to address?
The Clarity Act is designed to reduce regulatory ambiguity by defining oversight responsibilities more clearly, particularly where jurisdictional questions may slow market activity.

How can a government shutdown affect IPOs?
Shutdowns can delay regulatory review processes, creating backlogs that make it harder for companies to complete the steps required to go public.

Does strong demand guarantee a healthy IPO market?
Not necessarily. Demand is important, but regulatory capacity and policy stability are also critical for IPO execution.

Why do governance issues between regulators matter?
Disagreements or unclear authority between agencies can slow decision-making, which affects market confidence and operational timelines.

Cheryl Casone:
And why the Clarity Act is so important in general. I want to bring in Chris McMahon. He’s on set, because Chris, you make the point—we’ve already had a conversation this morning about a potential government shutdown that could really backlog the IPO market again.

Chris McMahon:
Yeah, that’s a real problem for us. This should be a record year for IPOs across the board. And you think about it—Stripe, SpaceX, and the crypto companies as well—there should be a record year for IPOs.

But if we see a prolonged government shutdown, especially a battle, there’s still a path for going public, but it is a very, very narrow path. It’ll gum up the works in terms of the market recovery and the market growth this year.

And ultimately, we’ve got to make sure they don’t politicize this thing too much. This particular battle—the SEC and CFTC—that’s a governance issue we’ve got to get past, and I think we will.