Catenaa, Thursday, October 02, 2025- The US government shutdown has stalled dozens of cryptocurrency exchange-traded funds awaiting approval, leaving issuers and investors in limbo.
Congress failed to pass a funding bill late Tuesday, forcing federal agencies, including the Securities and Exchange Commission, to scale back operations.
The timing is critical, as the SEC was preparing to greenlight a wave of crypto ETFs covering tokens such as Dogecoin, XRP and Litecoin after easing listing rules in September.
An SEC spokesperson confirmed the agency is operating under its shutdown plan, which makes near-term ETF approvals unlikely.
Registration statements and review processes are effectively on hold until government operations resume, delaying launches many firms had expected within weeks.
One source described the disruption as “brutal,” warning it could derail momentum built under President Donald Trump’s administration, which has promoted friendlier crypto regulation.
Analysts said that while ETF approvals could proceed swiftly once the government reopens, deadlines such as Thursday’s for the Canary Litecoin ETF are effectively moot.
The SEC had recently approved generic listing standards allowing dozens of crypto ETFs to move forward without the older, lengthier review process.
Industry watchers now expect the agency may batch approvals together once operations restart, though timing remains uncertain.
For now, the focus shifts to how long the shutdown will last. The longest previous closure, in 2018, stretched 34 days, while others ended within weeks.
The duration will determine when issuers can expect clarity on a potentially transformative moment for digital asset markets.
