The federal closure in the US could disrupt the much-anticipated spot ETF approval process in the cryptocurrency market.
The Securities and Exchange Commission (SEC) added uncertainty by announcing that it would not carry out activities during the shutdown.
In its official statement, the SEC announced that it will not review or approve new financial products and registration applications. “The SEC will not review or approve any new financial instrument registration applications or applications from entities such as investment advisors, broker-dealers, transfer agents, rating agencies, investment companies, and municipal advisors,” the statement said. Additionally, processes such as changes to stock exchange rules, registration statements for securities offerings, and regular reporting of issuers will also be suspended.
ETF expert Nate Geraci said the shutdown will directly affect the launch of the Spot Crypto ETF. “The long-term government closures seem to have no doubt affect the launch of the new Spot Crypto ETF,” Geraci said. “October, where many ETF approvals are expected, could be slightly behind.”
The development creates significant uncertainty, especially for Spot Bitcoin and Altcoin ETFs, which are expected to be approved in October, but investors are focused on solving the Washington budget crisis.
*This is not investment advice.
