The US government shutdown has stalled the approval of cryptocurrency ETFs

Regulators can still take action against fraud and market emergencies during a shutdown, but their day-to-day work grinds to a halt. Initial public offerings, ETFs and other filings can be delayed, rulemaking or suspended, and non-essential staff are often furloughed (without pay).
Due to the fact that spot ETFs require formal approval from the SEC's Division of Corporation Finance before they can start trading, the expected issuance of cryptocurrency spot ETFs such as Litecoin, Solana, and XRP may not proceed until government funds resume disbursement.
"It's like a game suspended due to rain," said Eric Balchunas, an ETF analyst at Bloomberg. This was illustrated by the fact that when Crypto In America contacted the SEC to clarify the matter, a spokesperson said the government shutdown limited their ability to respond to media inquiries.
Earlier this week, the SEC asked exchanges that partner with multiple cryptocurrency ETF issuers to withdraw their 19b-4 filings after approving the common listing standards, which no longer require separate filings. Under these standards, cryptocurrency ETFs can take effect on a rolling basis, which means that once the government shutdown ends, there may be a wave of ETF issuance.