US Government Shutdown Halts SEC Crypto ETF Approvals, Weighs on Ripple XRP

The U.S. federal government shut down on Sept. 30—the first major lapse since 2019—and agencies including the SEC have paused routine reviews and approvals, freezing more than 100 crypto-related ETF filings and halting S-1 effectiveness work until funding is restored. That pause threatens an imminent wave of spot altcoin ETF listings (Solana, Litecoin and others) that issuers had expected to clear in early October after the SEC adopted a generic listing standard, leaving launches and registration-effective actions on hold. Market effects are mixed: some tokens historically suffered large declines during prior shutdowns—XRP fell about 12.8% and 12.45% in past shutdowns—and pending spot-XRP ETF applications from firms like Grayscale and 21Shares face near-term deadlines that could be delayed by the funding lapse. Other analysts note the broader crypto market is more mature and showed resilience in the first 24 hours after the shutdown (total market cap rising roughly $66 billion), and certain altcoins that plunged in 2018 (TRX, AAVE) are now seen as less likely to repeat those losses. For traditional investors worried about extended volatility, advisers suggest defensive positioning—such as allocating to safe-haven or lower-cost gold ETFs—until political and regulatory clarity returns.