What happened?
The federal government shutdown has paused many agency functions, including SEC reviews of IPOs and crypto ETPs, slowing expected approvals. Solana Policy Institute President Kristin Smith says this is a temporary disruption, not a derailment, and that crypto progress on Wall Street and in Washington will continue. She expects momentum to return once the government reopens and paused applications move forward quickly.
Who does this affect?
Crypto companies and ETF applicants waiting on SEC sign-offs are directly impacted, as are exchanges and asset managers looking to launch new products. Investors in digital assets and crypto-focused funds face uncertainty and potential delays in accessing new investment vehicles. Lawmakers, policy groups, and industry advocates are also affected because stalled agency activity pauses formal rulemaking and policy progress.
Why does this matter?
Market impact comes from delayed approvals that can slow capital inflows into crypto ETFs and other products, potentially increasing short-term volatility and investor uncertainty. At the same time, the large size of the U.S. ETF market means there’s significant pent-up demand that could move quickly once approvals resume, creating rapid flows. Ultimately, policy timing will help shape where innovation and investment happen, so the pause could either slow growth short-term or lead to a fast rebound and concentrated market moves when momentum returns.