Issuers of new cryptocurrency ETFs are racing against the clock as the possibility of a U.S. government shutdown threatens to disrupt regulatory approvals just as decision deadlines approach.

Several high-profile ETFs, including those for Solana (SOL $235.90) and Litecoin (LTC $119.69), are at risk of being delayed if federal operations are paused. Over recent months, asset managers have been in active discussions with the Securities and Exchange Commission (SEC), updating their S-1 registration statements — often seen as a sign of imminent approval. A shutdown, however, could freeze these processes entirely.

One insider suggested that some approvals might still be possible next week, provided the government remains open. Spot Solana ETF filings, in particular, are considered close to finalization, with multiple rounds of SEC comments already addressed. Issuers are preparing to submit their final S-1 forms.

Adding to the regulatory momentum, the SEC recently instructed listing exchanges to withdraw their 19b-4 filings and resubmit them under the updated General Listing Standards. This procedural shift indicates the agency may be readying new crypto products for approval.

October presents a packed schedule of decision deadlines. Canary Capital’s Litecoin ETF response is due October 2, while other applications face final review between October 10 and 24. A government shutdown could force these deadlines into indefinite limbo if Congress fails to pass a funding bill by Tuesday midnight.

A shutdown would furlough most federal employees, including SEC staff. While a skeleton crew remains for “essential” functions, it is unclear whether crypto ETF reviews qualify. Historically, financial product approvals have often been paused unless critical to market stability.

There remains the possibility that the SEC has completed much of the review behind the scenes, which could allow approvals to move forward despite a shutdown, but that scenario is speculative.

Issuers and exchanges are left monitoring Capitol Hill closely, as regulatory timing becomes increasingly uncertain.

The race to launch spot crypto ETFs has intensified in 2025, following the SEC’s surprise approvals of multiple spot Bitcoin ETFs in 2024. Many of the same firms are now seeking products tied to alternative tokens such as Solana and Litecoin, aiming to broaden the range of regulated crypto investment options.

For now, however, the outcome may hinge less on market readiness and more on politics.