America’s federal government has now entered its third week of shutdown, leaving up to 16 exchange-traded funds (ETF) pending approval if the shutdown extends into November.
The US government came to a halt on Oct. 1 when Republicans and Democrats failed to finalize a funding plan. As a result, agencies, including the US Securities and Exchange Commission responsible for approving ETF applications, are operating with only essential personnel.
The crypto sector anticipated a wave of ETFs in October, with the SEC poised to make definitive decisions on at least 16 crypto ETFs, alongside another 21 applications submitted in the initial eight days of October. However, the shutdown has left everything in uncertainty, causing deadlines to pass without any action.
No end to the US government shutdown in sight
No clear timeline has emerged regarding the end of the shutdown, as both parties remain in deadlock over conflicting demands.
Republican leaders are advocating for reduced spending to tackle the growing national debt, now exceeding $37.8 trillion, or about $111,000 per US citizen, while seeking increased funding for areas like border enforcement.
Differently, Democrats oppose cuts to healthcare and are calling for an extension of expiring tax credits, which help lower health insurance costs, among other requests.
The Senate has no scheduled votes until Tuesday, and the House is currently out of session, leaving no immediate path to resolve the shutdown.
To end the shutdown, both the House of Representatives and the Senate must pass legislation that finances the government through a complete budget consisting of 12 separate bills or a continuing resolution, which serves as a temporary measure to maintain current funding while negotiations persist.
Once the bills are passed, President Donald Trump can enact them into law, thus ending the shutdown.
Currently, Republicans hold power in both chambers of Congress; however, they lack enough votes in the Senate to pass spending bills without Democratic cooperation.
This marks the 11th shutdown in US history and the first since the December 2018 to January 2019 shutdown, which lasted 35 days, making it the longest recorded shutdown to date.
Altcoin season hangs in the balance
ETF analyst and NovaDius Wealth Management president Nate Geraci speculated in a post on X that “Once government shutdown ends, spot crypto ETF floodgates open,” predicting mass approvals.
Related: US government shutdown may signal crypto market bottom: Analysts
“It’s ironic that increasing fiscal debt and typical political drama are delaying these approvals. This is exactly what crypto aims to address,” he remarked.
Bitfinex analysts had suggested in August that a new altcoin season might emerge if all proposed ETFs received approval, as they provide exposure to cryptocurrencies with reduced risk, potentially attracting more investors.
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