US Government Shutdown Halts SEC Operations, Delaying Crypto ETF Approvals

01.10.2025 20:17

The US federal government has officially shut down due to a budget crisis, leading the Securities and Exchange Commission (SEC) to suspend most of its regulatory activities. In an official statement, the SEC announced that it will not review or approve new financial product and registration applications during the shutdown, including those from investment advisors, broker-dealers, and other entities. Processes such as stock exchange rule changes, registration statements for securities offerings, and issuer periodic reports are also suspended.

ETF expert Nate Geraci emphasized that a prolonged shutdown will directly impact the launch of new spot crypto ETFs, potentially delaying approvals expected in October. Bitwise Chief Investment Officer Matt Hougan stated, "If the government shuts down, nothing will get approved," while an anonymous source confirmed that decisions on pending altcoin ETFs are unlikely during the shutdown. The SEC's Trading and Markets Regulations explicitly prohibit reviewing pending applications or issuing interpretive recommendations during such events.

Jason Allegrante, Fireblocks chief legal officer, noted that the delay is temporary but creates significant market uncertainty. This follows recent SEC requests for issuers to withdraw 19b-4 applications for spot ETFs on various altcoins, including XRP, Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Litecoin (LTC), Polkadot (DOT), Hedera (HBAR), and Ethereum (ETH) staking ETFs, which were complied with prior to the shutdown.

BTC $109522.50 -0.38%
The delay in spot Bitcoin ETF approvals due to SEC shutdown may cause short-term price declines, as historical ETF delays often lead to negative sentiment and selling pressure. The SEC's credibility and scale of impact heighten uncertainty, likely resulting in immediate price volatility, though long-term prospects could improve if approvals eventually occur.
XRP $2.48 -0.79%
Postponement of XRP ETF decisions during the shutdown may trigger short-term price drops due to regulatory uncertainty. Similar historical events show altcoins react negatively to delays, with SEC inactivity amplifying investor caution. Immediate effects are likely negative, but resolution could restore momentum.
SOL $185.02 -0.08%
SOL's price may face short-term pressure from delayed ETF approvals, as SEC halts exacerbate regulatory risks. Historical analogies indicate altcoin prices often dip on such news, with high credibility of SEC actions driving immediate negative sentiment, though long-term recovery is possible post-shutdown.
DOGE $0.18 -2.15%
DOGE's memecoin status may amplify volatility from ETF approval delays, with short-term price declines likely due to heightened uncertainty. Historical trends show meme coins are sensitive to regulatory news, and SEC's scale of influence could drive immediate selling, but temporary nature of shutdown may limit long-term damage.
ADA $0.59 -2.42%
ADA may experience short-term price weakness as ETF delays during shutdown dampen investor enthusiasm. Past regulatory halts have led to altcoin corrections, and SEC's role adds credibility to negative impact, likely causing immediate declines, with potential for rebound if approvals resume.
LTC $97.54 -2.50%
LTC's price could drop short-term due to postponed ETF decisions, mirroring historical reactions to SEC inactivity. The shutdown's scale and credibility may fuel negative sentiment, leading to immediate pressure, though long-term effects may be neutral if delays are brief.
DOT $2.89 -2.09%
DOT may see short-term price declines from ETF approval halts, as regulatory uncertainty often triggers sell-offs. SEC's involvement heightens impact, with historical patterns suggesting immediate negative effects, but deferred positive momentum if shutdown ends and approvals proceed.
HBAR $0.19 -3.54%
HBAR's price might face short-term negativity from delayed ETF reviews, with SEC shutdown amplifying regulatory risks. Similar events have caused altcoin dips, and high credibility of news could lead to immediate declines, though long-term outlook depends on resolution timing.
ETH $3829.66 -1.16%
ETH staking ETF delays during shutdown may cause short-term price pressure, as regulatory halts historically affect Ethereum negatively. SEC's scale of action increases likelihood of immediate selling, but temporary nature suggests limited long-term impact if approvals eventually occur.
Sources
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