Crypto ETF launches delayed as SEC work freezes
The U.S. government shutdown has halted approvals for new cryptocurrency exchange-traded funds, delaying launches that issuers expected to begin this fall.
The Securities and Exchange Commission is operating at reduced capacity, continuing only enforcement and emergency actions. Routine filings and product reviews have been delayed, including pending spot crypto ETFs for assets such as Litecoin, Solana, and XRP.
These products require formal approval from the SEC's Division of Corporation Finance before trading can begin. An SEC spokesperson confirmed the shutdown has limited the agency's ability to respond to inquiries. The shutdown began October 1, 2025, following a budget impasse in Congress.
The halt comes after the SEC asked exchanges to withdraw individual 19b-4 filings for certain crypto ETFs. The agency approved generic listing standards that allow products to go effective on a rolling basis once regular operations resume.
These products require formal approval from the SEC's Division of Corporation Finance before trading can begin. An SEC spokesperson confirmed the shutdown has limited the agency's ability to respond to inquiries. The shutdown began October 1, 2025, following a budget impasse in Congress.
The halt comes after the SEC asked exchanges to withdraw individual 19b-4 filings for certain crypto ETFs. The agency approved generic listing standards that allow products to go effective on a rolling basis once regular operations resume.
Non-essential SEC staff are furloughed during shutdowns, creating a backlog of IPO and ETF filings. Regulatory rulemaking is paused until the agency reopens.
Several issuers had prepared spot crypto ETF launches for fall 2025 following the SEC's approval of generic standards. Companies including VanEck, Franklin Templeton, and Grayscale filed applications for Solana, Litecoin, and XRP products earlier in the year.
The SEC cannot process new registrations or provide comment letters on pending filings during the shutdown. Previous government shutdowns have created similar delays for financial product approvals.
Industry participants are monitoring developments in Washington to determine when the standoff will end. The timing will affect when spot crypto ETFs can begin trading on U.S. exchanges.
The shutdown affects all SEC divisions, including Corporation Finance, Trading and Markets, and Investment Management. Only activities deemed essential for protecting investors or maintaining market integrity continue during the closure.
Previous shutdowns in 2018-2019 and 2013 delayed securities filings and caused backlogs that took weeks to clear after operations resumed. The current shutdown's duration remains uncertain as budget negotiations continue.
Several issuers had prepared spot crypto ETF launches for fall 2025 following the SEC's approval of generic standards. Companies including VanEck, Franklin Templeton, and Grayscale filed applications for Solana, Litecoin, and XRP products earlier in the year.
The SEC cannot process new registrations or provide comment letters on pending filings during the shutdown. Previous government shutdowns have created similar delays for financial product approvals.
Industry participants are monitoring developments in Washington to determine when the standoff will end. The timing will affect when spot crypto ETFs can begin trading on U.S. exchanges.
The shutdown affects all SEC divisions, including Corporation Finance, Trading and Markets, and Investment Management. Only activities deemed essential for protecting investors or maintaining market integrity continue during the closure.
Previous shutdowns in 2018-2019 and 2013 delayed securities filings and caused backlogs that took weeks to clear after operations resumed. The current shutdown's duration remains uncertain as budget negotiations continue.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
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