America’s federal government has entered its third week of shutdown, leaving as many as 16 exchange-traded funds (ETF) awaiting approval should the shutdown continue into November.
Most of the US government came to a standstill on Oct. 1 when the Republicans and Democrats failed to reach a funding agreement. This has caused agencies, including the US Securities and Exchange Commission, which approves ETF applications, to run with only essential staff.
The crypto industry was set for a flood of ETFs in October, with the SEC set to make their final decisions on at least 16 crypto ETFs, and another 21 applications filed in the first eight days of October, but the shutdown has left everything in limbo, with deadlines passing and no action taken.
No end to the US government shutdown in sight
There is no clear timeline for when the shutdown may occur, as both sides remain in a stalemate over competing demands.
Among the Republicans’ demands are rolling back spending to reduce the growing national debt, which has grown to over $37.8 trillion, or roughly $111,000 per person in the US, while increasing funding to areas such as border enforcement.
Meanwhile, the Democrats oppose the cuts to healthcare and also want an extension of expiring tax credits, which make health insurance cheaper, among other demands.
The Senate isn’t scheduled to hold any votes until Tuesday, and the House is out of session, leaving no immediate avenue to end the shutdown.
For it to end, Congress, both the House of Representatives and the Senate, must pass legislation to fund the government through a full budget with 12 separate bills that fund different parts of the government, or a continuing resolution, which is a temporary measure to keep the government funded at current levels while negotiations continue.
Once the bills pass, President Donald Trump can sign them into law, and the shutdown will end.
The Republicans currently control both chambers of Congress; however, in the Senate, they are short of the votes needed to pass spending bills without Democratic support.
The shutdown is the 11th in US history and the first since the December 2018 to January 2019 shutdown, which lasted 35 days and remains the longest on record to date.
Altcoin season hangs in the balance
ETF analyst and NovaDius Wealth Management president Nate Geraci predicted in an X post on Monday that “Once government shutdown ends, spot crypto ETF floodgates open,” with mass approvals expected.
Related: US government shutdown may signal crypto market bottom: Analysts
“Ironic that growing fiscal debt & usual political theater holding these up. Exactly what crypto is targeting,” he added.
Bitfinex analysts had predicted in August that a new altcoin season could be on the horizon if all the proposed ETFs were approved, because they offer exposure to the coins with less risk, which could attract more investors.
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