How Will the US Government Shutdown Affect XRP, Dogecoin, Solana, and Cardano ETF Approvals? An Insider Responds

The official US government shutdown has disrupted the launch of dozens of altcoin ETFs. The US Securities and Exchange Commission (SEC)'s final approval process for cryptocurrency ETFs has been thrown into uncertainty with the government shutdown. The SEC was reportedly considering applications for ETFs based on various altcoins, including DOGE, XRP, and LTC. Numerous companies have submitted these applications over the past year, amid the Trump administration's more conservative approach to crypto. However, Congress' failure to reach a budget agreement on Tuesday night stalled the process. A source familiar with the matter said, “Under normal circumstances, it's safe to say the SEC ceases operations during lockdowns. There's a small possibility that SEC Chairman Paul Atkins might grant a special exemption to crypto ETFs, but that's not certain.” The SEC is not currently expected to take action to register or list new ETFs, meaning any comment letters or approval processes for applications will be suspended until the government reopens. Related News: One of Japan's Largest Financial Companies May Have Had Its Cryptocurrency Wallets Hacked - Here Are the Details Tomorrow, in particular, is a critical deadline for the Canary Litecoin ETF. However, these dates have lost their significance due to regulatory changes made by the SEC last month. The commission accepted listing standards proposed by three exchanges, allowing crypto ETFs to trade more quickly without the need for the 19b-4 process. Once the government opens up, the process could be “nearly automatic,” according to the sources. If ETF applications meet general listing standards, SEC approval could be faster than for past spot Bitcoin and Ethereum ETFs. Some experts suggest that the SEC could approve individual product ETFs en masse, which could happen in October or November. However, the most critical factor here is when the registration documents will become effective. This process is entirely dependent on the decision of the SEC's Division of Corporate Finance. “As with the Solana ETF process, when applications are submitted on the same day, the institution evaluates them collectively. However, applications submitted on different days may be approached differently,” the source said, adding that there will be a heavy application traffic in the coming weeks. *This is not investment advice. Continue Reading: How Will the US Government Shutdown Affect XRP, Dogecoin, Solana, and Cardano ETF Approvals? An Insider Responds