According to the source, a U.S. government shutdown activates the SEC’s lapse-in-appropriations plan that suspends normal processing of filings and applications, limits rulemaking, and keeps only emergency functions running. Source: U.S. Securities and Exchange Commission, Operations Plan for Lapse in Appropriations, sec.gov. Crypto ETF launches require both an exchange rule change filing on Form 19b-4 and an effective registration statement such as Form S-1, so a suspension of these reviews directly pauses ETF progress tied to BTC and ETH that traders monitor for timing. Source: SEC Rule 19b-4 under the Exchange Act (sec.gov) and SEC Form S-1 General Instructions (sec.gov). Routine SEC enforcement actions are also suspended, with activity limited to emergencies necessary to protect property or life, reducing non-emergency enforcement developments during the shutdown window. Source: U.S. Securities and Exchange Commission, Operations Plan for Lapse in Appropriations, sec.gov.

According to @StockMKTNewz, citing Bloomberg, the US SEC will halt most of its activities if a federal government shutdown occurs. Bloomberg reports that companies seeking to go public via IPO that have not completed SEC paperwork and had their filings declared effective before a shutdown may face delays, which can shift IPO calendars and execution timing. Bloomberg also notes the SEC’s EDGAR corporate filing system will remain fully functional during the shutdown. Per Bloomberg, only about 400 SEC employees would remain on duty, focused on market oversight and fraud detection.