Analysis: The Impact of the U.S. Government Shutdown on Crypto ETF Approval Progress

ChainCatcher news reports that, according to Crypto In America, the U.S. government shutdown has led to limited operations for the SEC, causing the approval process for several cryptocurrency ETF products to be forced to pause. Reportedly, spot ETF products including Litecoin, Solana, and XRP will have to wait until the government resumes operations to continue progressing.

The SEC can currently only handle matters involving fraud and market emergencies, while routine approval work is on hold. Bloomberg senior ETF analyst Eric Balchunas likened this situation to "rain delay."

Previously, the SEC had requested several cryptocurrency ETF issuers' cooperating exchanges to withdraw their 19b-4 application documents. It is expected that after the government shutdown ends, there may be a wave of concentrated approvals for cryptocurrency ETFs.