Government Shutdown Results in Crypto ETF Postponement at SEC
The U.S. government is partially closed, which has disrupted the SEC’s usual operations. A major outcome at this moment is the suspension of the review of applications for spot alternative coin ETFs. For investors eager to see new crypto funds approved shortly, particularly those associated with Solana and other prominent tokens, the delay just increased.
SEC Halts Reviews Amid Budget Stalemate
The SEC has a backup strategy for such scenarios, which clearly indicates that only urgent matters will be addressed during a shutdown. All other activities, including new financial product applications, are currently suspended . This leaves crypto ETF requests in a state of uncertainty.
It seems a prolonged government shutdown would indeed affect the introduction of new spot crypto ETFs…
ETF Cryptober might be delayed for a while.
From SEC’s “Operational Plan Under a Lapse in Appropriations & Government Shutdown”… pic.twitter.com/Z6gY1bJbUt
— Nate Geraci (@NateGeraci) October 1, 2025
The agency was processing more than 90 applications for non-BTC crypto ETFs before the shutdown. Numerous ones were expected to receive approvals in early October. With the government now closed, everything has come to a standstill.
Delays for Solana and Alternative coin ETFs
ETFs associated with tokens such as Solana, XRP, Cardano, Litecoin, and Dogecoin are all in progress. Analysts had mentioned October as a probable launch timeframe for some of them, particularly those based on Solana. That enthusiasm is now at odds with the circumstances of a regulatory freeze. Rather than capitalizing on what many were referring to as ETF season, applicants find themselves counting the minutes with no clear schedule ahead.
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Industry-Wide Consequences
The delay is not only a source of frustration for issuers. It’s creating ripple effects throughout the industry. Companies that intended to launch are now on long-term holding. Some are incurring greater expenses while others may miss optimal market periods. ETF analysts caution that the longer this hodl lasts, the more likely it is to affect broader market momentum.
The entire scenario highlights how dependent new crypto products are on the SEC’s ability to operate effectively.
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Insights from the Industry
Industry professionals are voicing their concerns. Bloomberg ETF analyst Eric Balchunas remarked that “The time for Crypto ETF approvals has definitely come,” although the current timing appears ironic. Issuers are expressing their dissatisfaction but also showing faith that approvals will eventually follow.
The season for Crypto ETF approvals has indeed arrived! https://t.co/85h74ZZ7LS
— Eric Balchunas (@EricBalchunas) September 30, 2025
Looking Ahead
All attention is now focused on when the SEC will resume full operations. Once they’re back, the pressing question will be how swiftly they navigate the backlog. Will they seek to compensate for lost time or adhere to a slower pace? It’s also uncertain whether the original October projections will remain valid or need adjustments. Beyond the timing, the critical challenge is whether investor and issuer momentum can be reinstated after the hiatus. Some may re-enter the trading market immediately, while others may proceed with caution.
Currently, the government shutdown has left crypto ETF approvals in a state of uncertainty. Everyone is eager to see when progress will resume.
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Key Takeaways
- The U.S. government shutdown has halted SEC reviews, freezing more than 90 pending non-BTC crypto ETF applications, including Solana ETFs.
- During the shutdown, the SEC is only addressing emergency situations, leaving all crypto ETF applications stuck in limbo.
- Solana, XRP, Cardano, Litecoin, and Dogecoin ETFs are likely to experience delays, despite earlier expectations of October approvals.
- Industry leaders and issuers have shared their frustrations but remain optimistic that approvals will recommence once the SEC is fully operational.
- The impacts of the shutdown include lost launch opportunities, rising expenses, and a potential slowdown in the crypto ETF market’s momentum.
The post Government Shutdown Causes Crypto ETF Delay at SEC originally appeared on 99Bitcoins.
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