The much-anticipated approval of an XRP exchange-traded fund (ETF) is facing significant hurdles due to the ongoing US government shutdown. With key regulatory agencies, including the Securities and Exchange Commission (SEC), operating on a limited capacity during this period, ETF approvals are grinding to a halt. 🤯
The SEC’s official contingency plan reveals that only critical market surveillance and enforcement functions remain operational. This means non-emergency activities such as reviewing and processing applications for ETFs, including those related to XRP, have been suspended until funding is restored.
Despite the ongoing hype surrounding an imminent approval date, it is crucial to understand that the SEC’s decision deadlines don’t guarantee immediate action even in regular circumstances. The shutdown has effectively frozen the clock on approvals. ⏳
This delay impacts more than just XRP; over a dozen cryptocurrency-related ETF applications are also awaiting decisions, all now stuck in limbo until the government reopens.
While experts expect progress to resume after the shutdown, it could take weeks for the SEC to clear the backlog and prioritize applications. The realistic timeline suggests that approvals might not happen before late November or December.
The impact of this delay underscores the need for patience among XRP investors. The potential breakthrough in ETF approvals remains a topic of excitement, but current circumstances indicate a likely wait period before any meaningful progress is achieved.