XRP News Today: Crypto ETF Fate Uncertain as Government Shutdown Halts SEC Rulings

The U.S. Securities and Exchange Commission (SEC) has postponed decisions on several cryptocurrency exchange-traded funds (ETFs) until October 2025, a timeline now further complicated by the government's recent shutdown. The agency cited the need for additional time to evaluate proposed rule changes, with deadlines for seven ETFs-including Truth Social's Bitcoin and Ethereum ETF, multiple XRP-focused funds, a Litecoin ETF, and a staking-enabled Ethereum ETF-pushed to October 8–23, 2025. This delay follows a pattern of extended reviews, with four Solana ETFs also pushed to October, reinforcing the SEC's cautious approach to digital assets SEC Delays Decision on Seven Crypto ETFs Until October 2025^[1].

The government shutdown, which began on October 1, 2025, has paralyzed the SEC's operations, halting routine reviews and approvals. Essential staff remain on duty, but non-essential functions, including ETF approvals, are suspended. This has added uncertainty to the October 25 deadline for XRP ETFs, with analysts noting that approvals during the shutdown are unlikely . Market participants, including Grayscale, 21Shares, and Bitwise, have filed XRP ETF applications with deadlines between October 18 and 23, but these are now in limbo.

The delayed approvals have impacted market sentiment, with prediction markets like Polymarket lowering odds for Litecoin and XRP ETF approvals to 79% and 77%, respectively . Institutional investors have also adopted a cautious stance, with some suspending crypto allocations amid regulatory uncertainty . Retail traders, meanwhile, face heightened volatility as ETF news influences altcoin prices and staking services.

The SEC's extended review period reflects its balancing act between fostering innovation and ensuring investor protection. While the agency has streamlined ETF approvals under new generic listing standards, individual applications still require case-by-case evaluations. This has led to prolonged timelines for altcoin ETFs, which face unique challenges such as unresolved regulatory issues (e.g., XRP's legal status) and technical complexities (e.g., staking mechanisms in Ethereum ETFs) SEC Delays Decision on Seven Crypto ETFs Until October 2025^[1].

Analysts suggest the October 2025 deadlines could remain pivotal for crypto ETFs. If approvals materialize, they may catalyze broader institutional adoption and market liquidity. However, the government shutdown has introduced an unprecedented variable, potentially delaying decisions until after the agency resumes full operations. For now, the crypto industry remains in a holding pattern, with all eyes on October 25 as a potential turning point for XRP and other altcoin ETFs .