The U.S. government shutdown has entered its third week, leaving 16 pending crypto exchange-traded fund (ETF) applications in limbo. The ETFs—some tracking assets like Solana (SOL), XRP, Litecoin (LTC), and Dogecoin (DOGE)—were expected to receive decisions this month from the U.S. Securities and Exchange Commission (SEC), but progress has stalled due to limited staffing at the agency.
The shutdown began on Oct. 1 after lawmakers failed to agree on a federal budget. Without full funding, most government agencies, including the SEC, are operating with reduced capacity, delaying key regulatory decisions.
In addition to the 16 ETFs awaiting final approval, 21 more applications were submitted in the first week of October, highlighting growing interest from financial firms in crypto-based investment products. Industry experts had anticipated a wave of approvals, but now face uncertainty as political gridlock continues.
ETF analyst Nate Geraci commented on X (formerly Twitter), “Once the government shutdown ends, spot crypto ETF floodgates open,” suggesting multiple approvals could follow once the SEC resumes full operations.
Analysts at Bitfinex have also noted that a broad approval of altcoin ETFs could trigger a new ”altcoin season,” by offering traditional investors safer access to crypto markets.
There is currently no set date for the shutdown to end. Until Congress passes either a full budget or a temporary funding bill, agencies like the SEC will remain limited in their ability to act—leaving the crypto industry, and investors, waiting.
Featured image from: coinedition.com