The federal government shutdown in the US could disrupt the long-awaited spot ETF approval process in the cryptocurrency market.
The Securities and Exchange Commission (SEC) added to the uncertainty by announcing that it will not conduct activities during the shutdown.
The SEC announced in an official statement that it will not review or approve new financial product and registration applications. The statement stated, “The SEC will not review or approve registration applications or applications for new financial products from entities such as investment advisors, broker-dealers, transfer agents, rating agencies, investment companies, and municipal advisors.” Additionally, processes such as stock exchange rule changes, registration statements for securities offerings, and issuer periodic reports will also be suspended.
ETF expert Nate Geraci stated that the shutdown will directly impact the launch of spot crypto ETFs. “It appears a prolonged government shutdown will definitely impact the launch of new spot crypto ETFs,” Geraci said. “October, when a large number of ETF approvals are expected, may be slightly delayed.”
This development creates significant uncertainty, particularly for spot Bitcoin and altcoin ETFs, which are expected to be approved in October, while investors are focused on resolving the budget crisis in Washington.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/how-will-the-government-shutdown-affect-cryptocurrencies-heres-the-secs-official-statement-and-expert-commentary/
