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The SEC Shutdown Is Freezing Crypto Deals – Here’s What Investors Need to Know

20.10.2025 8:30 2 min. read Alexander Zdravkov
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The SEC Shutdown Is Freezing Crypto Deals – Here’s What Investors Need to Know

More than a month into the federal shutdown, agencies overseeing digital assets are struggling to operate, leaving critical approvals and rulemakings on hold.

The Securities and Exchange Commission (SEC), in particular, has paused sign-offs on everything from crypto ETFs to tokenization frameworks, creating a growing backlog of applications. Analysts warn that the impasse could easily extend past 40 days, with each additional week magnifying delays.

For crypto firms, the problem isn’t outright rejection – it’s waiting in silence. “We’re ready to move, but there’s no one on the other side of the table,” said an exchange executive.

Despite the paralysis, demand for regulated crypto access continues to rise. Charles Schwab clients now control nearly 20% of U.S. crypto ETF assets, while traffic to institutional research portals has surged compared to last year. Retail and institutional investors alike appear poised for the next wave of approvals.

When regulators return to full capacity, they will confront a flood of applications. Experts anticipate a surge of decisions in the days following funding restoration, potentially unlocking billions for new crypto products. However, rapid review doesn’t mean leniency – legal and compliance checks will remain rigorous. “A shutdown doesn’t erase the playbook; it just delays the referee,” noted one policy advisor.

In the meantime, markets have largely shrugged off the disruption. Bitcoin trades near $107,000, with traders viewing the lull as “pent-up optimism” ahead of the eventual approval backlog clearing. The industry now waits in a delicate balance: strong investor interest on one side and a regulator frozen in pause on the other.

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.

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