September 2025 Public Policy Update

As Congress resumes its session after the August recess, lawmakers are confronted with a packed agenda of high-stakes legislative work. September, traditionally one of the busiest months on the congressional calendar, is living up to its reputation this year. The ongoing debate around digital assets, alongside contentious budget negotiations, nominations and other key items, is adding a layer of complexity to the legislative landscape. Despite these challenges, CFP Board's public policy team continues to monitor and act upon legislative and regulatory developments that impact the financial planning profession and the clients you serve.

Countdown to the Government Funding Deadline: Will There Be a Shutdown?

With just three legislative days remaining until the September 30 deadline, Congress has been under immense pressure to pass legislation to fund the government and prevent a federal shutdown. A potential solution is a temporary stopgap funding measure known as a continuing resolution (CR). Likely to be the chosen path, a CR would provide short-term funding to keep the government operating at current levels, allowing more time for negotiations on a longer-term funding bill. While the House GOP-led seven-week CR passed 217-212, it failed in the Senate 44-48. The Senate also rejected the Democrats' proposed CR by a closer margin of 47-45, which included an extension of the Affordable Care Act (ACA) premium tax credits, which are set to expire at the end of the year.

Currently, the House and the Senate are on recess for Rosh Hashanah, with the Senate expected to return on Sept. 29 and the House likely to resume after a potential government shutdown on Oct. 1. However, negotiations continue behind the scenes, leaving the possibility of avoiding a shutdown. Members can be called back at any time to vote on a funding patch. To put it another way, the likelihood of a federal government shutdown is quite high.

What Would a Federal Government Shutdown Mean for You?

In the days leading up to a potential government shutdown, agencies are asked to publish their contingency plans, advising personnel and external stakeholders on how they will navigate the contentious period. These plans outline who is deemed "essential," how teams will be impacted and who will be furloughed. While this has yet to be published, we can glean from past shutdowns what we can possibly expect.

The Securities and Exchange Commission (SEC) is likely to reduce its operations to essential services, pausing IPO reviews, registrations, mergers, as well as most litigation and rulemakings. We can expect the Electronic Data Gathering, Analysis and Retrieval (EDGAR) system to continue functioning.

The Federal Trade Commission (FTC) can continue operating using carryover funds; however, if the shutdown extends beyond a short period, we can expect delays in investigations, lawsuits and some antitrust cases.

The Commodity Futures Trading Commission (CFTC) would suspend nonessential examinations and enforcement.

Many functions of the U.S. Department of Labor (DOL) would also cease, including at the Employee Benefits Security Administration (EBSA). At the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA), we can expect data collections and releases to be suspended. This would delay jobs and inflation reports, which are vital to the markets and the Federal Reserve.

Agencies not funded through the federal appropriations process would remain open, including: the Federal Reserve, Consumer Financial Protection Bureau (CFPB), Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).

Crypto Policy: More Activity, More Complexity

Crypto asset policy continues to evolve at a rapid pace. In early September, Senate Republicans released an updated draft of the Responsible Financial Innovation Act, a bill that addresses the structure of the crypto market. The update clarifies asset classification, disclosures, banking and compliance rules. As a reminder, the House passed its market structure bill, CLARITY Act (H.R. 3633), in July. Lawmakers on both sides of the aisle continue to consider what a final market structure should look like, and there's still much to do, with the Senate Agriculture Committee also having a stake in its jurisdiction over the CFTC.

At the SEC, "Project Crypto " is underway, with rulemaking under development, as announced recently in its "reg flex agenda." We anticipate the release of proposals regarding custody, disclosures and broker-dealer definitions in the coming months.

Retirement Policy Shifts Continue

Following President Trump's Executive Order on expanding access to alternative assets in retirement plans, the DOL has initiated preliminary work on rulemaking. This rulemaking, which aims to guide fiduciaries on incorporating private equity, real estate and digital assets into defined contribution plans, may face potential legal challenges, leading to implementation delays. The DOL also issued its regulatory agenda, with announced projects focused on, among other things, the fiduciary rule. The Senate recently confirmed Daniel Aronowitz to be Assistant Secretary at EBSA at DOL, which fills a very important vacancy for this rulemaking. However, a government shutdown would place many staff on furlough and shutter non-essential work, delaying this and other rulemakings.

What's Coming Up This Fall

CFP Board continues to walk through the halls of Congress, visiting with congressional staff, members and key individuals around Washington, D.C., in an effort to further the financial planning profession and protect the American consumer. To that end, we have recently unveiled our public policy priorities, which can be found here.

If you plan to attend CFP Board Connections Conference, please swing by the session titled "Wealth and Policy: What Washington's 2025 Agenda Means for Americans' Financial Futures" on Oct. 7 at 2:00 p.m. CST. You can expect a lively discussion about our priorities and current events.

Lastly, if you have any questions or would like to engage with our public policy work, please don't hesitate to reach out.