SEC Delays Crypto ETFs Amid US Shutdown
- Main event: SEC delays crypto ETFs, heightening market uncertainty.
- Fidelity, Invesco applications pending amid government inaction.
- Institutional demand for XRP rises despite delays.
The U.S. government shutdown extending beyond 40 days is delaying the approval of major crypto ETFs, particularly affecting Solana (SOL) and XRP, with operations halted at the SEC.
Prolonged delays heighten uncertainty but coincide with increased institutional demand for these ETFs, indicating potential market shifts despite regulatory setbacks.
The U.S. government’s prolonged shutdown has delayed reviews of major U.S. crypto ETFs, particularly Solana (SOL) and XRP. This uncertainty occurs alongside notable institutional demand spikes for these and related assets.
Key entities include the SEC, Fidelity, Franklin Templeton, and Invesco. SEC’s limited operations suggest further delays. A spokesperson confirmed the agency’s restricted functions during this shutdown.
Immediate effects include disrupted regulatory processes, with Solana and XRP market volatility due to uncertainty. Institutional inflows into XRP continue despite these issues, reaching $61.6 million in a week.
The shutdown contributes to financial uncertainty, impacting market stability and expected ETF launches. Investors face challenges as the SEC handles essential functions only.
Similar past government shutdowns caused delays in regulatory actions and market shifts. The ongoing SEC standstill affects crypto asset prices, driven by ETF anticipation or postponements.
Potential outcomes include a heightened focus on institutional investments or adaptive strategies by affected companies. Regulatory rigors and public investor reactions may shape the near future.
“The agency is currently operating in accordance with its plan for functioning during a government shutdown. That plan says the SEC will maintain a narrow set of essential functions during the shutdown, while many normal functions will be halted.”
