The US government officially closed late Tuesday night after lawmakers failed to pass the funding bill. Closures have been happening 21 times since 1980, and in many cases it has caused short-term disruptions, but this comes at a critical time for the crypto industry, especially XRP and other crypto ETF filings.
The market is mild, but the crypto can feel pressure
Historically, US government closures have had little impact on mainstream markets. During the 2013 closure, the S&P 500 rose 3%. The 2018-2019 shutdown saw an increase of over 10%. On average, closures since 1976 have not moved significantly across the market. However, the behavior of ciphers is different.
Political uncertainty can change risk appetite and increase the volatility of digital assets. During shutdowns, traders often move quickly inside and outside the crypto. This is one of the most liquid risk assets. Recent sales on shutdown news highlight this pattern.
ETF approval may be delayed
The most direct impact on cryptocurrencies comes through regulatory delays. The Securities and Exchange Commission (SEC) relies on full staffing to review and approve ETF applications. The shutdown could cause agents to run alongside the skeleton crew, slowing reviews and postponing approvals. Analysts warn that ETF-TOBER, the expected month for the launch of the new Crypto ETF, could stall if the shutdown continues.
- Read again:
- Why is the crypto market going down today?
- ,
The SEC recently directed XRP, SOL, ADA, DOGE and LTC issuers to withdraw their filing for the 19B-4. This means that new listing standards are in place and approval may progress. The infrastructure, Wall Street and the crypto market are ready. However, government closures have stopped progressing and put billions of potential ETF influx on hold.
Washington: Up-Two Bar’s Greatest Obstacle
For crypto investors looking forward to launching new ETFs, government shutdowns raise unexpected hurdles. Volatility and regulation remain important factors, but political gridlocks may be the main reason new approvals are delayed. Until Congress resolves the funding stalemate, the SEC will not be able to operate completely, leaving XRP and other crypto ETFs in Limbo.
Don’t miss beats in the crypto world!
Get real-time updates on the latest trends such as Breaking News, Expert Analysis, Bitcoin, Altcoin, Defi, NFT and more.
FAQ
Historically, the stock market has shown resilience during government shutdowns, with the S&P 500 profiting from past events.
Yes, shutdowns may delay the approval of cryptographic ETFs. The SEC may work with the skeleton crew, halting the review process and postpone the expected decision.
The expected “ETF-TOBER” could stall. With long-term government shutdowns, the SEC will prevent it from fully functioning and push back the potential launch schedules for new crypto ETFs.