U.S. government shutdown stalls cryptocurrency ETF approvals

Jinse Finance reported that during a U.S. government shutdown, regulatory agencies can still take action against fraud and market emergencies, but routine operations will come to a halt. Initial Public Offerings (IPOs), ETFs, and other filing documents may experience processing delays, rulemaking may be suspended, and non-essential staff are typically temporarily laid off (furloughed without pay). Since spot ETFs require formal approval from the SEC's Division of Corporation Finance before trading can commence, the anticipated issuance plans for spot ETFs of cryptocurrencies such as Litecoin, Solana, and XRP may have to wait until government funding is restored before moving forward. Bloomberg ETF analyst Eric Balchunas stated: "It's like a game paused due to rain." This situation is evidenced by the following event: when Crypto In America contacted the SEC to clarify related matters, a spokesperson said the government shutdown limited their ability to respond to media inquiries. Earlier this week, after approving general listing standards, the SEC required several crypto ETF issuers' partner exchanges to withdraw their 19b-4 filings—since with the new general standards, such individual filings are no longer necessary. According to these standards, crypto ETFs can take effect on a rolling basis, meaning that once the government shutdown ends, there could be a wave of ETF launches.