- The anticipation for the approval of a Spot Bitcoin Exchange Traded Fund (ETF) in the US may be hit by a looming government shutdown.
- The Securities and Exchange Commission (SEC) might operate with limited functionality, postponing non-emergent obligations like the Bitcoin ETF approval.
In a climate of fervent anticipation for regulatory advancements in the crypto industry, the spotlight has been on the awaited approval of a Spot Bitcoin (BTC) Exchange Traded Fund (ETF) in the United States. However, a shadow looms large with an impending government shutdown threatening to derail this milestone.
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. If not, the agency would be limited in https://t.co/n3qX6NFQw7
— Eleanor Terrett (@EleanorTerrett) September 25, 2023
SEC’s Dilemma Amid Shutdown Scare
The countdown to a governmental stalemate inches closer, with the United States having a mere four days to steer clear from a shutdown, as per recent updates. The potential fallout poses a direct threat to the operations of key regulatory bodies like the Securities and Exchange Commission (SEC), which is at the helm of approving the Bitcoin ETF.
In a scenario where the bipartisan effort to avert a shutdown crumbles, the SEC faces a dichotomy: to cease operations or continue with a pared-down functionality, given any residual funds from the fiscal year. As delineated by Fox Business Journalist Eleanor Terrett, the regulatory body could maintain full capacity if there are leftover funds to underpin its enforcement and review actions.
The clock is ticking with the next deadline for Bitcoin ETF approval slated for mid-October. However, the SEC, amidst a fiscal crunch, may not perceive this approval as a critical obligation, thus fueling a delay in the much-anticipated nod.
The history of government shutdowns and their repercussions on federal agencies isn’t novel. SEC Chair Gary Gensler has voiced concerns regarding a “skeletal” staff operation during a shutdown, right at a juncture when decisive deadlines are knocking at the door. This scenario resonates with the sector’s urgency for clear directives from the SEC concerning ETF applications, among other pivotal regulatory intersections.
As former SEC official Anne Kelley highlights, during past shutdowns, the agency exhibited a modicum of operational resilience, utilizing budgetary flexibility. However, whether the SEC possesses the requisite funds this time around, remains an enigma.
The narrative unfolds amid a broader tableau where major economies have already embraced Spot Bitcoin ETFs, with the US lagging. Notably, market behemoths like BlackRock and Fidelity have ventured into this domain, amplifying the expectations manifold.
The crypto sphere, amid these unfolding realities, hangs in a balance, awaiting the governmental maneuver to avoid a shutdown and the SEC’s subsequent course of action concerning the Spot Bitcoin ETF approval. With each passing day, the anticipation among crypto enthusiasts and investors escalates, against a backdrop of uncertainty that envelops the regulatory landscape.