- SEC processes can be hindered, which delays Crypto ETF approvals for Solana and Litecoin.
- Limited employees during the closure may stop organizational reviews and final dates.
- The delay can reduce investor confidence and operate market fluctuations in Altcoins.
The possibility of closing the US government is uncomfortable in the world of cryptocurrencies, especially about the fate of Solana (Sol) and Litecoin (LTC).
The Securities and Stock Exchange Committee (SEC), which oversees the approval of these investment products, can see its operations strongly impeding it, which leads to the suspension of organizational decisions.
How can the closure affect ETF approvals
Approval of new financial products such as Crypto ETFS is largely dependent on SEC’s comprehensive review process.
But as the operation that waves on the horizon will stop, only a small number of SEC employees will remain in the job, focusing only on critical jobs.
This means that the difference that declines ETF encryption deposits is likely to be made or forced to work with the least capacity.
Many fund managers are chasing time tables, in the hope of decisions in early October.
For example, the expected Litecoin ETF from the Canary Capital is a major organizational date on October 2, and it now appears increasingly uncertain amid the employment crisis.
Although some preparatory reviews may have been completed before the closure, the lack of complete employees means that the process will definitely slow down.
Whether SEC will look at the similar basic Crypto ETF reviews that must be seen.
History shows that non -critical activities stop temporarily during the closure, leaving the fate of these products in organizational forgetfulness.
The effect of the market on Solana, Litecoin
The delay in ETF approvals have concrete effects on market dynamics. Solana, which is currently traded near $ 206, and Litecoin, constant about $ 105, depends on institutional money flows that help the investment funds circulated to facilitate them.
When organizational uncertainty, investor confidence fractures, trade remains more careful.
The encryption market, already sensitive to regulatory signals, may face fluctuations in response. Any temporary stoppage in the new investment methods that weakens more enthusiasm, which is likely to run the last gains.
However, a quick decision to close and resume SEC approvals may unleash renewed momentum, which revives attention in this altcoins.
Industry observers are still watching in 2025 as a year of penetration for Crypto ETFS outside Bitcoin.
If the approvals come shortly after the closure, Solana and Litecoin may benefit significantly from increasing institutional participation.
Currently, market participants are watching nervously as Washington’s political networks weigh on the organizational front, and they remind everyone how politics and intertwined markets have become.