- SEC shutdown freezes over 90 pending crypto ETF applications, halting market momentum.
- Solana and XRP lead pending ETF filings, showing growing institutional altcoin interest.
- Billions in potential inflows delayed, risking slower mainstream adoption of crypto ETFs.
The U.S. crypto market’s long-awaited ETF boom paused when the federal government shutdown forced the Securities and Exchange Commission to furlough most of its staff.
The US government shutdown has created a crypto ETF approval delay that froze more than 90 pending applications. Each file now sits idle until Congress restores funding and the SEC can reopen its review calendar.
Solana and XRP Dominate Pending Filings
Solana and XRP lead the pack, with 10 and 9 pending ETF applications respectively, signaling strong institutional appetite for altcoins beyond Bitcoin and Ethereum. Ethereum follows with five filings, while Dogecoin and Binance Coin each have four.
Related: Investors Watch REX-Osprey ETFs as SEC’s 75-Day Window Closes
Other projects such as Cardano, Hedera, and Sui hold smaller representations, reflecting a widening investor base for diversified crypto portfolios. The pending approvals highlight how far traditional finance has moved toward adopting digital assets as structured investment
vehicles.
SEC Paralysis Freezes Momentum
The SEC’s operational paralysis has halted reviews of these applications. With fewer than 10% of staff active, the agency’s non-essential functions including ETF processing remain frozen.
The timing could not be worse. In September, the SEC had approved a new framework allowing certain crypto funds to bypass lengthy approval routes, using simplified registration forms. The industry had expected an October greenlight, but the shutdown ended that momentum abruptly.
Billions in Institutional Inflows on Hold
Analysts estimate that initial approvals could have unlocked between $5 billion and $10 billion in new inflows. Global momentum around crypto ETFs was already growing, and the U.S. was expected to follow Europe’s lead in approving diversified digital-asset funds. However, legal experts warn that if the shutdown extends beyond a few weeks, these launches could slip into 2026.
Related: XRP Tops Crypto Market Ahead of October SEC ETF Decisions
Significantly, the situation exposes the dependence of financial innovation on Washington’s political stability. A swift resolution could revive confidence, enabling ETF issuers such as VanEck to move forward by late October. However, prolonged political gridlock risks cooling institutional enthusiasm and delaying what many view as a defining step toward mainstream crypto adoption.
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