XRP and Cardano ETF Approvals Still Not Arrived, SEC Remains Silent: What Happens Next?

The anticipated Cardano and XRP exchange-traded fund (ETF) applications from the U.S. Securities and Exchange Commission (SEC) have been overshadowed by political gridlock in Washington.

This week, the SEC has been facing a decision deadline for three different XRP ETF applications and Grayscale's Cardano ETF, but has not released any statements. Due to the ongoing US federal government shutdown since October 1st, the SEC is operating at limited capacity, and ETF approval processes have been temporarily halted.

Andrew Jacobson, a legal advisor for Halliday and former global head of legal at 21Shares, said in a statement that he expects the approval process to move quickly once the government reopens.

“Autumn is typically the busiest time for ETFs. Things will move very quickly once the government reopens.”

The current shutdown is the second-longest government shutdown in US history. According to a new poll on cryptocurrency prediction platform Polymarket, only 7% of investors believe the government will reopen by October 31st.

This raises the possibility of surpassing the record 35-day shutdown set during Donald Trump's first term. However, White House National Economic Council Director Kevin Hassett indicated this week that the shutdown could end soon. The US Senate is set to hold its 11th vote to refinance the government.

Despite all the uncertainty, expectations for a Cardano ETF remain strong. According to Polymarket data, users rate a 77% chance of a Cardano ETF being approved by 2025.

These expectations were further reinforced by the SEC's significant changes to the crypto ETF approval process in September. The new regulations reduced the spot crypto ETF approval timeframe from 240 days to 75 days and simplified the process for cryptocurrencies that meet certain requirements.