SEC Goes Skeleton Crew in U.S. Shutdown, Canary Litecoin ETF Left Waiting

• U.S. shutdown leaves SEC on skeleton crew, stalling Canary Litecoin ETF paperwork
• SEC asked issuers to pull 19b-4s; generic listing now guides crypto ETF approvals
• October ETF timelines for Solana/XRP may slip as SEC reviews slow under shutdown

The U.S. government shutdown has left the Securities and Exchange Commission (SEC) operating with a skeleton crew, forcing it to miss its October 2 deadline for the Canary Litecoin ETF. 

Related: U.S. Government Shutdown 2025 Begins: What Triggered It and What It Means for Crypto Markets

U.S. Government Shutdown Stalls SEC Decision on Litecoin ETF

The agency has yet to sign off on the ETF’s Form S-1 withdrawal, a technical but critical step to shift the product under the SEC’s new generic listing standards. Without that sign-off, the ETF sits in limbo.

Bloomberg ETF analyst James Seyffart explained that while Thursday was “technically the final deadline” under the old 19b-4 process, the SEC has already asked issuers to refile under the generic framework. That means old dates matter less, but with staff cuts, even simple approvals are stuck.

Related: SEC to Decide on 16 Altcoin Spot ETFs in October: XRP, Solana, Litecoin on the Line

Analysts Flag Generic Rules, Shutdown as Double Drag

Fox Business reporter Eleanor Terrett added that an SEC spokesperson admitted the agency cannot respond to routine inquiries while furloughed. “The shutdown throws a wrench into things,” Seyffart said, noting that a Litecoin ETF is still expected in the near future, but timing depends on how long the government deadlock lasts.

Traders on Kalshi now price nearly 70% odds that the shutdown runs past 10 days, raising the risk that more ETF approvals across October will face the same stall

Eric Balchunas, ETF specialist, noted that uncertainty on crypto spot ETF approvals in October will thus continue due to a lack of options.

Other Crypto Spot ETFs Likely to be Affected By Government Shutdown

If the U.S. government shutdown continues for more than 10 days, here are spot crypto ETFs that will be impacted like the Canary Litecoin ETF:

• Grayscale Solana Trust on October 10.

• Bitwise Solana ETF on October 16.

• 21Shares Core Solana ETF on October 16.

• Bitwise XRP ETF on October 20.

• CoinShares XRP ETF on October 25.

• WisdomTree XRP ETF by October 25.

Litecoin Price Holds Key Support

On the charts, Litecoin (LTC) has defended $103 support since mid-July, a level traders see as the floor for the next leg higher. Over the past 48 hours, LTC surged 12%, retesting a multi-year downtrend line and flipping it into support.

With sentiment leaning toward an altseason rally in Q4, the ETF narrative could become a driver if approvals restart once Washington reopens. Until then, the market trades on conviction, not confirmation.