The US government shutdown has thrown the approval process for crypto ETFs, including Solana (SOL) and Litecoin (LTC), into uncertainty. With the SEC’s decision deadlines set for October, mandatory furloughs of agency staff could result in delays or suspensions of the review process.
The shutdown, triggered by Congress’ failure to agree on a budget, coincides with a crucial stage in ETF applications. Over the past months, several issuers had updated their S-1 filings following close interactions with the SEC. Expectations for imminent approval, particularly for Solana ETFs, had been rising. However, the shutdown now undermines those prospects.
In recent weeks, the SEC requested exchanges to resubmit their 19b-4 filings under its “General Listing Standards,” a move interpreted as signaling progress toward approval. Key deadlines for Solana and Litecoin ETFs were set throughout October, but historical precedents suggest such processes are likely to be suspended during a shutdown.
Following spot Bitcoin ETF approvals, the race for new crypto ETFs has expanded to Solana, Litecoin, Dogecoin, and XRP. Market participants had anticipated synchronized approvals, but the political deadlock in Washington may derail those plans. Unless the SEC finalized documents behind the scenes before the shutdown, approvals during this period appear unlikely, leaving issuers and traders in a wait-and-see mode.
