U.S. government shutdown enters third week… 16 crypto ETF approvals stalled

The U.S. federal government shutdown has entered its third week, effectively halting the approval process for 16 virtual asset (cryptocurrency) exchange-traded funds (ETFs), including Solana (SOL), XRP, Litecoin (LTC), and Dogecoin (DOGE). Attention is focused on whether ETF approvals will be possible once the shutdown ends.

On the 13th (local time), Cointelegraph reported that the federal government entered a partial shutdown starting October 1 after Republicans and Democrats failed to agree on a budget. As a result, major government agencies, including the U.S. Securities and Exchange Commission (SEC), which handles ETF approvals, are operating with minimal staff and are unable to function normally.

The SEC had been scheduled to make final decisions on at least 16 crypto ETFs in October, and 21 new applications were additionally filed during the first eight days of the month. However, due to the shutdown, no actions have been taken even after deadlines passed.

With the political deadlock continuing, the timing for the end of the shutdown is unclear. Republicans are pushing for spending cuts and stricter border controls to reduce the national debt, while Democrats are demanding extensions of healthcare subsidies and tax credits. The Senate has no votes scheduled through Tuesday, and the House is also in recess, making a near-term compromise unlikely.

Nate Geraci (Nate Geraci), CEO of Novadius Wealth Management, said, "A wave of spot (physical) ETF approvals will begin as soon as the government shutdown ends," adding, "Ironically, the fiscal debt and political conflicts that caused this situation are exactly the problems that cryptocurrencies seek to solve."