The SEC's regulatory paralysis blocks more than 150 digital asset ETF applications

The U.S. government shutdown has frozen the SEC’s review process of cryptocurrencies. Currently, the Commission is managing an unprecedented volume of over 150 crypto ETF applications, with decisions on hold indefinitely. Among them are proposals for derivatives instruments of XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC), among other assets.

The domino effect: overdue deadlines and applicants waiting

Some cases have already surpassed their resolution dates without any ruling issued. A notable example is Canary Capital’s application for an LTC-based ETF, whose regulatory deadline expired without a response from the agency. This accumulation of delays creates an informational vacuum that fuels speculation in the markets.

Administrative paralysis not only affects applicants but also exacerbates uncertainty among market participants. Investors seek clarity on which assets will receive approval and when, information that the SEC cannot provide during the shutdown.

Expert projections: heading towards a backlog crisis

According to analyses by ETF specialists in the financial sector, the number of pending applications could reach 200 in the coming months. This accumulation indicates a concerning trend: while institutional interest in listed crypto products intensifies, the regulator’s administrative capacity is compromised.

The prolonged delay is not merely bureaucratic. It represents a slowdown in institutional adoption of crypto assets and fuels speculative volatility in decentralized markets, where investors seek alternatives due to the lack of official regulatory clarity.