According to Odaily, insiders revealed on Monday that the US Securities and Exchange Commission (SEC) Trading and Markets Division has notified exchanges of their intention to approve 19b-4 this week, a shift from their position two weeks ago. The issuer responsible for S-1 reportedly contacted the SEC, but the review staff of the SEC's Corporate Finance Division seemed to have a different opinion from the Trading and Markets Division. It's worth noting that the SEC's Trading and Markets Division is responsible for reviewing 19b-4, while the Corporate Finance Division is responsible for reviewing S-1.
An insider stated, 'They haven't even coordinated internally, which is why this is likely a political decision.' Some sources speculate that the SEC's change of mind may be politically motivated due to the upcoming elections. The SEC's decision to approve 19b-4 represents a significant shift in their stance, and the lack of internal coordination suggests that political factors may be at play. The contrasting views within the SEC's divisions highlight the complexity of the regulatory landscape.