- The U.S. government shutdown stalls 16 pending crypto ETF applications as the SEC runs limited operations.
- Nate Geraci says “spot crypto ETF floodgates open” once the government resumes normal activity.
- Lawmakers’ budget deadlock enters its third week, extending the longest shutdown since 2019.
The U.S. government shutdown has entered its third week, delaying key financial and regulatory decisions, including 16 pending crypto ETF applications. The Securities and Exchange Commission (SEC) has been operating with limited staff since October 1 after lawmakers failed to reach a budget agreement. The deadlock has frozen market activity across several sectors.
Crypto ETFs Stuck as SEC Runs on Limited Operations
The SEC had planned to issue decisions on multiple crypto exchange-traded funds (ETFs) throughout October. However, with the agency operating on essential personnel only, no new approvals or reviews have been processed. Several deadlines have already passed without updates, leaving applicants and investors waiting for clarity.
ETF analyst Nate Geraci of NovaDius Wealth Management commented on X, saying, “Once the government shutdown ends, spot crypto ETF floodgates open.” He described the situation as “the calm before the floodgates open,” noting that mass approvals could follow once normal operations resume.
Analysts believe that the pending ETFs could boost digital asset adoption by allowing investors to gain crypto exposure through regulated financial products. However, with the SEC inactive, the anticipated October wave of ETF approvals has been indefinitely delayed.
Political Stalemate Extends Into Third Week With No End in Sight
The shutdown commenced when republicans and democrats could not agree on a funding solution, shutting down most of the federal government. Republicans have demanded a decrease in spending and increased funding in border security, and the Democrats have objected to healthcare cuts and demand to extend the existing tax credits.
Both chambers of Congress remain adjourned without a clear plan to pass a funding measure. To have the government reopened, both the House and Senate have to approve new budget bills or a temporary one before the president can make it law.
The standoff has become the first prolonged shutdown since early 2019, when a similar deadlock lasted 35 days. Financial analysts are warning that a prolonged lack of progress in negotiations can have an impact on larger markets in case the situation persists through to November.
