U.S. Shutdown Could Delay Solana and Other Crypto ETF Approvals, Potentially Stalling Altcoin Season

• Immediate effect: SEC ETF deadlines are stalled while agencies run with essential staff.

• At least 16 spot crypto ETF decisions are pending, with another 21 applications filed in early October.

• US federal debt stands near $37.8 trillion; the shutdown is the 11th in US history and paused normal regulatory action.

US government shutdown stalls crypto ETF approvals—16 funds awaiting SEC decisions. Read on for timeline, market impact, and next steps. COINOTAG coverage.

US government shutdown stalls SEC reviews of 16 spot crypto ETFs, pausing decisions on Solana, XRP, Litecoin and Dogecoin-based funds; COINOTAG explains market impact.

By COINOTAG — Published: 2025-10-13. Updated: 2025-10-13.

What is the impact of the US government shutdown on crypto ETF approvals?

The US government shutdown has delayed the Securities and Exchange Commission’s review process for at least 16 spot crypto ETF filings. With agencies operating on essential staff only, final SEC decisions are on hold, meaning ETF approvals and related market access that could influence altcoin flows are temporarily suspended.

How long could ETF decisions be delayed and what determines the timeline?

Delays last as long as Congress keeps parts of the government unfunded. Resumption depends on Congress passing funding bills or a continuing resolution and the President signing them into law. The Senate and House schedules control timing; if legislative activity remains paused, SEC staffing and routine approvals stay constrained.

Government shutdown details and implications for markets

America entered a federal shutdown on Oct. 1 after the House and Senate failed to agree on funding. The impasse centers on competing policy and spending demands. Republicans have pressed for spending cuts and increased border enforcement funding, while Democrats have opposed cuts to healthcare and sought extensions of expiring tax credits.

The shutdown has placed many federal agencies into limited operation. The U.S. Securities and Exchange Commission (SEC), which must clear ETF applications, is operating with essential personnel only. That staffing limitation means statutory review periods and internal decision processes are effectively frozen for many pending filings.

At least 16 spot crypto ETFs—some proposed to track tokens such as Solana, XRP, Litecoin and Dogecoin—were awaiting final SEC decisions in October. Another 21 applications were filed in the first eight days of October, indicating continued issuer interest despite the regulatory pause. These figures are based on filings submitted to the SEC and market reporting compiled by industry trackers and analysts.

No clear end in sight to the shutdown

There is no defined timeline for resolution. For the shutdown to end, Congress must pass funding legislation covering 12 appropriations bills or enact a continuing resolution. Given the current schedules—no Senate votes before the next session and the House out of session—an immediate legislative path to re-open government is limited.

Source: Congressional Research Service 

Republicans control both chambers, but in the Senate they lack the simple majority needed to pass significant spending measures without some Democratic support. This political math prolongs uncertainty. The current shutdown is the 11th in US history and the first since the December 2018–January 2019 shutdown, which lasted 35 days—the longest on record.

Altcoin season and market expectations

Market observers and ETF strategists have linked ETF approval momentum to a potential rotation into altcoins. Nate Geraci, ETF analyst and president of NovaDius Wealth Management, said on social media that “Once government shutdown ends, spot crypto ETF floodgates open,” forecasting mass approvals once the SEC can resume normal operations. This direct industry commentary underscores how regulatory timing affects market sentiment.

Bitfinex analysts had previously suggested that broad ETF approvals could catalyze a new altcoin season by providing lower-risk market access to investors. Those industry views are widely circulated among market participants and form part of the consensus analysis about potential demand shifts if approvals proceed.

Source: Nate Geraci

While ETFs can lower barriers for institutional and retail investors, approval alone does not guarantee inflows. Market structure, investor risk appetite, macro conditions and custody arrangements all play roles. Analysts emphasize that ETF approval is a necessary but not sufficient condition for immediate capital rotation into altcoins.

Frequently Asked Questions

How many crypto ETFs are currently awaiting SEC approval?

At least 16 spot crypto ETF applications were awaiting final SEC decisions in October, with an additional 21 applications filed in early October. These counts reflect public SEC filings and industry reporting compiled by market analysts.

Will ETF approvals happen immediately after the shutdown ends?

Not necessarily. Once funding resumes, the SEC must restore full staffing and complete its review processes. Many decisions may follow quickly, but exact timing depends on internal SEC schedules and the specifics of each filing.

Key Takeaways

• Regulatory pause: The government shutdown has put SEC ETF reviews on hold, delaying potential spot crypto ETF approvals.
• Market implications: Approval delays postpone any ETF-driven flows that could benefit altcoins like Solana, XRP, Litecoin and Dogecoin.
• Next steps: Investors should watch congressional funding votes and official SEC communications; approval momentum resumes only after the government reopens and regulatory processes return to normal.

Conclusion

The federal government shutdown has a direct, measurable effect on crypto market infrastructure by delaying SEC review and potential approval of at least 16 spot crypto ETFs. Mentioned authorities include the U.S. Securities and Exchange Commission and the Congressional Research Service; industry voices include Nate Geraci and Bitfinex analysts. COINOTAG will monitor legislative developments and SEC updates; investors should track official regulatory notices and funding votes for the clearest signals on timing.