How the U.S. Government Shutdown Could Impact XRP ETF Approvals

The post How the U.S. Government Shutdown Could Impact XRP ETF Approvals appeared first on Coinpedia Fintech News

The U.S. government officially shut down at midnight on Tuesday after lawmakers failed to pass a funding bill. While shutdowns have happened 21 times since 1980, often causing short-term disruptions, this one comes at a crucial time for the crypto industry, particularly XRP and other crypto ETF filings.

Markets Are Calm, but Crypto Could Feel the Pressure

Historically, U.S. government shutdowns have had little effect on mainstream markets. During the 2013 shutdown, the S&P 500 gained 3%. In the 2018–2019 shutdown, it rose more than 10%. On average, shutdowns since 1976 have not moved markets significantly. Yet crypto behaves differently.

Political uncertainty can shift risk appetite and increase volatility in digital assets. During shutdowns, traders often move quickly in or out of crypto, which is among the most liquid risk assets. Recent sell-offs around shutdown news highlight this pattern.

ETF Approvals Could Be Delayed

The most direct impact on crypto comes through regulatory delays. The Securities and Exchange Commission (SEC) relies on full staffing to review and approve ETF applications. A shutdown forces the agency to operate with a skeleton crew, slowing reviews and potentially postponing approvals. Analysts have warned that “ETF-tober,” the anticipated month for new crypto ETF launches, could stall if the shutdown persists.

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GOVT SHUTDOWN COULD STALL THE ETF-TOBER

What a bummer if DC gridlock stalls new crypto ETF approvals.