The U.S. government shutdown has entered its third week, stalling 16 pending crypto exchange-traded fund (ETF) applications as the Securities and Exchange Commission (SEC) operates with a skeleton crew. Since October 1, 2025, the SEC has been running on essential personnel only, delaying key decisions on ETFs tied to cryptocurrencies like Solana (SOL), XRP, Litecoin (LTC), and Dogecoin (DOGE).
ETF analyst Nate Geraci of NovaDius Wealth Management commented on X, stating, "Once the government shutdown ends, spot crypto ETF floodgates open." He described the situation as the calm before the storm, anticipating mass approvals once normal operations resume. The political deadlock between Republicans and Democrats over budget issues—including spending cuts, border security, healthcare, and tax credits—has extended the shutdown, with no clear end in sight, marking the longest closure since 2019.
Analysts, including those from Bitfinex, suggest that upon reopening, the SEC could quickly approve a wave of crypto ETFs, potentially sparking a new altcoin season by enabling easier investor access to a broader range of digital assets with reduced risk. However, with deadlines passing and the SEC inactive, the anticipated October wave of ETF approvals remains indefinitely delayed.
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