Why Haven’t the Expected XRP, SOL, and DOGE Spot ETFs Been Approved Yet? Here’s the Expectation and Reason

The government shutdown in the US, which began on October 1, disrupted the routine approval processes of the Securities and Exchange Commission (SEC).

The SEC has suspended routine approvals for crypto ETFs and IPOs, except in emergency situations, according to Crypto in America. This appears to have also frozen the approval process for Litecoin (LTC), Solana (SOL), XRP, and other spot ETF applications.

During government shutdowns, the SEC can respond to fraud and market emergencies. However, review of IPO, ETF, and similar applications, advancement of new regulatory work, and duties of personnel deemed “non-essential” are slowed or halted. Therefore, the SEC Division of Corporate Finance's formal approval for new product launches cannot be granted until after the shutdown ends.

Bloomberg Senior ETF Analyst Eric Balchunas likened the situation to a “rain break,” arguing that the process was a temporary pause. The SEC indirectly confirmed the impact of the shutdown by stating that they were unable to respond to press releases.

Shortly before the shutdown, the SEC had ordered some crypto ETF issuers to withdraw their 19b-4 filings with exchanges. Instead, the general listing standards eliminate the requirement for individual filings. This could pave the way for a cascade of crypto ETF launches following the government's re-funding.