The U.S. federal government is in its third week of shutdown, and up to 16 exchange-traded funds (ETFs) could be awaiting approval if the shutdown continues into November.
On October 1, much of the U.S. government was paralyzed after Republicans and Democrats failed to reach a funding agreement. As a result, agencies such as the U.S. Securities and Exchange Commission, which approve ETF applications, are operating with only essential staff.
The crypto industry was expected to be flooded with ETFs in October, with the SEC expected to make final decisions on at least 16 crypto ETFs, and 21 more filings scheduled to be filed in the first eight days of October, but with the shutdown, the deadline passed and no action was taken, leaving everything in limbo.
No end in sight for the US government shutdown
There is no clear timeline for when the shutdown will take place, as both sides remain at an impasse over competing demands.
Republicans’ demands also include spending cuts to reduce the national debt, which has ballooned to more than $37.8 trillion (about $111,000 per American citizen), and increased funding for areas such as border security.
Democrats, on the other hand, oppose cutting health care costs and want, among other demands, to extend expiring tax credits that lower health insurance premiums.
The Senate is not scheduled to vote until Tuesday, and the House is in recess, so there is no immediate way to end the government shutdown.
To end this issue, Congress, both houses of Congress, would need to either pass a bill to fund the government through a full budget, which includes 12 separate bills that fund various branches of government, or pass a continuing resolution, an interim measure to keep government funding at current levels while negotiations continue.
If the bill passes, President Donald Trump could sign it into law, ending the shutdown.
Republicans currently control both houses of Congress. But the Senate lacks the votes needed to pass a spending bill without Democratic support.
The shutdown is the 11th in U.S. history and the first since the shutdown from December 2018 to January 2019, which lasted 35 days and is the longest on record to date.
Altcoin season is in a delicate situation
“Once the government shutdown ends, the floodgates for spot crypto ETFs will open,” Nate Geraci, an ETF analyst and president of NovaDius Wealth Management, predicted on XPost on Monday, with mass approvals expected.
Related: US government shutdown could mark bottom for crypto market: analyst
“It is ironic that rising fiscal debt and normal political theater are preventing this, which is exactly what cryptocurrencies are targeting,” he added.
Bitfinex analysts predicted in August that there could be a new altcoin season if all proposed ETFs are approved. This is because those ETFs offer exposure to coins with less risk and may attract more investors.
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