U.S. Government Shutdown Enters Third Week as ETF ‘Floodgates’ Poised to Burst
Since October 1, 2025, most federal activities have been on because Republicans and Democrats couldn’t agree on a budget. This means that essential government institutions, such as the , which is in charge of approving ETFs, are only able to work with a small number of people.
As a result, 16 crypto ETF applications, including ones that follow Solana, XRP, , and Dogecoin, are still awaiting a decision. There were speculations of how October would be a large month for crypto ETFs, but now another 21 applications filed ahead in the month are also facing delays that aren’t clear yet. Deadlines pass, and the silence from regulators persists as long as the government budget standoff lasts.
Long-lasting Political Deadlock
Congress is split on a number of significant topics, so there may not be a quick answer. Republicans want to cut spending to assist lower the national debt, which is currently over $37.8 trillion. They also want to give more money to the border patrol. Democrats, on the other hand, are fighting against proposed cuts to healthcare and are asking for an extension of tax credits that are meant to slash insurance prices.
Both chambers are still on pause for legislative sessions, meaning there is no way for the federal government to begin working again unless both houses pass funding bills or a temporary measure called a continuing reanswer, which President Donald Trump must then sign into law.
Republicans are in charge of both houses of Congress, but they don’t have the supermajority in the that they need to pass budget measures without assist from Democrats. This is the 11th shutdown in U.S. history and the first following the record 35-day closure from December 2018 to January 2019.
The Crypto Industry is Ready For an later thanshock
Once the government reopens, analysts agree that the SEC will rapidly approve a large number of pending crypto ETFs. This is known as the “floodgates” bursting. , head of NovaDius Wealth Management, thinks that a lot of people will approve the products. He points out that it’s ironic that fiscal deadlock is holding up products that are appealing because they are not tied to typical political drama and the growing government debt.
analysts have previously suggested that approval of these crypto ETFs could initiate a new altcoin season, making it easier for investors to access a broader range of crypto assets with reduced risk. The possibility of a wide range of ETFs being approved is significant, given the ongoing discussion over how to regulate cryptocurrencies and what the future holds for digital asset investment products in the U.S.
What Happens Next?
To end the shutdown, all parties must agree on fresh federal funds, and then the government must act rapidly, and the president must sign off. The backlog of applications highlights both the opportunities and the risks that U.S. politics and regulations present for the rapidly evolving sector.
