End of U.S. Government Shutdown Sparks Wave of Crypto ETF Approvals

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This article was first published on The Bit Journal: Analysts believe the End of the US government shutdown will have a positive impact on the crypto industry. What exactly can we expect?

US President Donald Trump finally signed a package to end the US government shutdown late on Wednesday, bringing to a close the longest shutdown in US history.  The bill to fund the government through January 30, 2026, has also ignited buzz in the digital asset industry, with high hopes for crypto legislation and ETF applications.

Shutdown Caused Serious Harm to the Economy

According to press reports, the bill effectively brings an end to the 43-day impasse and is expected to have significant ramifications across various sectors, including the cryptocurrency, financial, and regulatory landscape. The report states that legislators from both sides of the political divide voted in favor of the bill with a margin of 222 to 209. On signing the bill to mark the End of the US government shutdown, President Trump stated:

“The total effect of the damage their antics caused will take weeks and probably months to really calculate accurately, including the serious harm that they did to our economy and to people and to families […] so I just want to tell the American people you should not forget this when we come up to midterms and other things.”

The End of the US government shutdown means that federal agencies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), will now resume full operations. The absence of these agencies had cast a shadow over several matters, particularly those involving crypto legislation and ETF applications, most of which had been put on hold.

Crypto Legislation and ETF Applications Revived

Within hours of the US government shutdown ending, several of these initiatives had already been revived. The US SEC immediately reactivated its systems, aiming to clear a backlog of tens of thousands of crypto-related legislation and ETF applications that were awaiting final review before the shutdown occurred. Commenting on the development, ETF expert Nate Geraci opined that the End of the US government shutdown would trigger a “floodgate” moment for the industry, with multiple launches expected within weeks.

Among the most prominent activities to revive was Canary Capital, which had filed Form 8-A for its Nasdaq XRP ETF, meaning the product could hit the market as soon as Thursday, once the exchange certifies the listing. On the other hand, a different development from the US Treasury and IRS gave further lift to the ETF space. This would allow agencies to offer staking-as-a-service for spot crypto ETFs, such that fund managers holding proof-of-stake tokens could stake their assets and distribute rewards to investors.

Conclusion

The End of the US government shutdown had a direct impact on several industries, but specifically on crypto legislation and ETF applications. The gridlock created a backlog of spot-crypto ETF applications with tens pending review by the Securities and Exchange Commission (SEC). With the government now reopened, these pending applications and legislative efforts can resume their course. The resolution has sent positive sentiment within the crypto industry, especially in the US.

Glossary of Key Terms

Government shutdown: A government shutdown occurs when the legislative branch fails to pass key bills that fund or authorize the operations of the executive branch, resulting in the cessation of some or all government operations.

ETF Applications: The official process and paperwork submitted to a financial regulator to get approval to launch a new Exchange-Traded Fund.

Crypto legislation: Laws and regulations designed to govern the creation, trading, and use of digital assets like cryptocurrencies.

Frequently Asked Questions about the End of the US government shutdown

How does a government shutdown end?

A government shutdown ends when Congress passes and the President signs the necessary appropriations bills or a temporary continuing resolution (CR) to fund federal agencies and programs.

What happens immediately after the shutdown ends?

Federal agencies resume operations: All affected federal agencies and programs resume normal operations immediately, federal employees return to work, back pay is provided, and services are restored.

How did the crypto industry fare during the 2025 government shutdown?

The shutdown affects several vital federal functions, including the ability of securities and commodities regulators to approve crypto listings. Lawmaking has also come to a halt, with the possibility of the crypto framework bill passing by year’s End becoming increasingly unlikely.