Crypto ETF Approvals Frozen as U.S. Shutdown Drags On

- SEC halts decisions on cryptocurrency ETFs during the government shutdown. - Newly streamlined processes could expedite approvals once normal operations resume. The ongoing U.S. government shutdown has disrupted the approval process for dozens of cryptocurrency exchange-traded funds (ETFs). On October 1, 2025, The Block reported that these ETFs are awaiting decisions from the Securities and Exchange Commission (SEC). The SEC is operating under a contingency plan with limited resources and cannot take action on ETF registration statements until the government reopens. The SEC’s shutdown protocol has paused crucial processes, as the agency cannot issue comment letters or declare registration statements effective, both of which are essential steps for ETFs to progress toward official launches. This interruption has amplified uncertainty among issuers and investors awaiting regulatory clarity for cryptocurrency ETFs. However, recent changes to the SEC’s listing standards could pave the way for faster ETF rollouts once the shutdown concludes. The agency recently implemented streamlined measures that simplify the process for listing cryptocurrency ETFs, which significantly reduces the time required for market entry. Moreover, The Block noted that the SEC’s Division of Corporation Finance was actively reviewing filings before the shutdown began. This groundwork increases the likelihood that the SEC will simultaneously approve multiple crypto ETFs once it resumes full operations. Market participants are closely watching developments, as the resolution of the government shutdown will dictate when the SEC can restart its approval process. The ongoing funding stalemate highlights the broader vulnerability of regulatory procedures to external disruptions. As of October 1, 2025, at 19:08 UTC, market data from CoinMarketCap shows XRP (XRP) trading at $2.939. This price reflects a 3.35% increase in 24-hour trading volume. Meanwhile, at 19:09 UTC on the same day, Dash (DASH) was priced at $30.47, marking a notable 36.55% rise over the past 24 hours. These cryptocurrencies are experiencing significant activity even amidst the uncertainty stemming from the regulatory pause.