After an eclectic year in the crypto industry, the growing anticipation for the approval of a spot Bitcoin (BTC) Exchange Traded Fund (ETF) product may eventually be stumped by current realities in the United States today.
Government Shutdown, SEC Might be Incapacitated
According to a new update shared by Fox Business Journalist Eleanor Terrett, the country has just about 4 days to stay open before a shutdown comes into effect. While America is always on the brink of these shutdowns, lawmakers are always finding a bipartisan solution to keep the government operational.
Should all efforts at this time fail, the Securities and Exchange Commission (SEC) will have two options left before it. It may either shut down or stay up with limited operations if it has leftover funds to fund its enforcement and review actions.
“We’re now only 4 days away from a possible government shutdown. If this occurs, the @SECGov could stay open in full capacity — continue to do rule makings and bring new enforcement cases — if it has leftover money from the fiscal year,” the post from Eleanor reads.
its abilities and rule makings and new cases would be reserved for emergencies only. The next deadline for the $BTC spot ETFs is mid-October. These may not be considered essential and could therefore mean more delays if the SEC shuts down.
— Eleanor Terrett (@EleanorTerrett) September 25, 2023
Should there be no funds left from the fiscal year, the commission will be restricted in its enforcement actions and will be limited to emergencies only.
According to the vocal journalist, the next deadline for Bitcoin ETF approval is slated for mid-October and the markets regulator may not consider this to be an essential obligation and as such, can fuel more delay in the expected approval time.
This development is unsettling many crypto experts as the SEC is notorious for naturally delaying crypto ETF approvals and this impending shutdown might serve as a perfect getaway for the regulator.
Bitcoin ETF: Delay but Not Denial?
The Bitcoin ETF expectation might turn out to be worth it if the looming delay does not translate into denial as most prior applications have been.
America remains one of the major economies in the world that is yet to approve a spot Bitcoin ETF, a trend many market proponents are hoping will change now that the likes of BlackRock and Fidelity are dipping their feet in the terrain.
While the trend among lawmakers is watched with regard to averting a government shutdown, crypto investors remain hopeful per their expectations across the board.