According to @cryptorover, a U.S. government shutdown is now expected to last into mid to late November. According to the U.S. SEC Operations Plan for a Lapse in Appropriations, most registrations, rulemakings, examinations, and normal enforcement are paused during a shutdown, which can delay reviews of exchange and ETF filings related to digital assets (source: U.S. SEC). According to the CFTC contingency plan for a lapse in appropriations, the agency maintains only essential market surveillance and enforcement, reducing routine oversight of crypto-linked futures and options (source: CFTC). According to the Federal Reserve, the Fed continues normal operations during a government shutdown because it is not funded by congressional appropriations (source: Federal Reserve). According to the U.S. Treasury, debt management operations financed by permanent appropriations, including marketable securities auctions and payments, continue during a shutdown (source: U.S. Treasury). According to the SEC and CFTC plans, timing of regulatory actions may be delayed, while, according to the Federal Reserve, monetary operations continue.

According to @EleanorTerrett, the U.S. government shutdown is limiting SEC operations and delaying routine approvals and filings, effectively putting crypto ETF approvals on hold, source: @EleanorTerrett. For traders, this means SEC-driven decision timelines and new ETF product launches are delayed until operations normalize, so calendars tied to SEC dockets and statutory decision dates may need adjustment, source: @EleanorTerrett. She also reports that @rstormsf has moved to dismiss his conviction, highlighted among this week’s top developments in her report, source: @EleanorTerrett.

According to the source, the U.S. Securities and Exchange Commission states in its Operations Plan Under a Lapse in Appropriations that during a government shutdown it will suspend most normal operations, including the review and approval of registrations, applications, and exchange rule filings (SEC.gov). The SEC plan further notes that while systems like EDGAR can continue to accept submissions, staff reviews and actions on pending matters are largely paused, implying decisions on crypto-related exchange-traded products will not be issued until funding is restored (SEC.gov). Historically, shutdowns delay federal agency actions on pending approvals, reinforcing the expectation of slippage in altcoin ETF timelines during a lapse in appropriations (Congressional Research Service, crsreports.congress.gov).

According to the source, a U.S. federal government shutdown would put the SEC on a limited-operations plan where most routine reviews and accelerations pause while EDGAR remains available for filings, per the SEC Operations Plan Under a Lapse in Appropriations. For pending crypto ETFs, exchange rule changes (Form 19b-4) are governed by statutory timelines measured from Federal Register publication; under Exchange Act Section 19(b)(2), the Commission must approve or disapprove within up to 240 days or the proposal is deemed approved, per the Securities Exchange Act of 1934 and the Federal Register. Spot BTC or ETH commodity-trust ETFs also require an effective registration statement before shares can be offered; during shutdown plans, the Division of Corporation Finance indicates it cannot review or accelerate effectiveness, which can delay timing, per the SEC Operations Plan and Securities Act Section 8(a). Listing can occur only when both the 19b-4 exchange rule change is approved and the issuer’s registration statement is effective, as reflected in the SEC’s January 10, 2024 spot Bitcoin ETF approval orders, per the SEC Order Approving Spot Bitcoin ETFs and related issuer filings.