DeutschThe US government shutdown casts a shadow over the crypto markets. After Congress failed to pass a budget, thousands of officials face unpaid leave – including employees of the US Securities and Exchange Commission (SEC). For numerous crypto investors, this means an uncertain waiting period: When the eagerly awaited decisions on the latest ETF applications will be made is currently completely unclear.
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The SEC is a key institution in the US financial system. Several applications for crypto ETFs were due to be decided in the coming weeks – including products based on Bitcoin, Ethereum, Solana, and Litecoin. Experts now expect that the procedures will be put on hold, at least temporarily. An insider told Blockworks: “It’s highly probable that no decisions will be made during the shutdown.” The reason is the drastic staff shortage within the agency.
SEC in Shutdown: What’s Next for Crypto ETFs?
The SEC itself has clear guidelines for such cases: The Department of Trading and Markets is not allowed to review applications during a government shutdown. The remaining staff is only busy answering urgent emails and handling emergency calls. Most crypto ETFs are now on hold, even though the US Securities and Exchange Commission had significantly simplified the requirements for new products in recent weeks.
Just recently, the SEC had adopted the “general listing standards.” These would have significantly accelerated the process: Crypto ETF applications no longer need to be reviewed individually and tediously. Potential fund providers like Grayscale or Canary Capital saw a glimmer of hope for their products in this. However, the current shutdown initially renders these advancements irrelevant.
For investors, this means: patience is key. The launch of the ETF products, which was expected for October, could be postponed. Those who had hoped to easily invest in certain cryptocurrencies via regulated exchange products before the end of the year may now have to wait longer.
Solana and Dogecoin ETFs in Jeopardy?
Analysts warn: “A short-term shutdown can emotionally impact the market.” Price movements could be volatile once new decisions are announced. Particularly exciting ETFs, such as those based on Solana or Dogecoin, are at risk. Large providers like BlackRock or Fidelity have held back so far – they too are closely monitoring developments.
Related topic: Crypto ETF Offensive: SEC to decide on 16 new ones in October
Despite the uncertainty, there are positive signals: The fundamental simplification of the rules remains. As soon as the SEC can operate at full strength again, the process should accelerate. Investors should therefore prepare – and remain vigilant. The shutdown is not a permanent obstacle, but rather a temporary slowdown for the crypto industry. (mck)
