- SEC shutdown stalls XRP ETF hopes, leaving investors waiting for clarity.
- Analysts predict XRP market recovery despite regulatory freeze halting approvals.
- Steingraber sparks optimism after XRP futures hit record 2025 low.
Anticipation for an XRP exchange-traded fund has turned into frustration as regulatory progress grinds to a halt. According to Vincent Van Code, the ongoing U.S. government shutdown has created a complete standstill at the Securities and Exchange Commission, preventing any movement on ETF applications, including those tied to XRP.
His remarks echo the growing sentiment that bureaucratic paralysis in Washington has placed crypto investors in an extended waiting game.
With only essential personnel still working, the SEC has paused all non-urgent reviews. Its focus is now on market surveillance and enforcement, while ETF approvals remain frozen.
Consequently, as Van Code earlier highlighted, the XRP ETF approval process is effectively frozen until government funding is restored and normal operations resume.
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Many believed official deadlines meant guaranteed action, but those timelines have no effect during a shutdown. The SEC’s review process depends on active staff coordination, document checks, and communication with issuers. With those processes halted, the approval of any XRP ETF is impossible until government funding resumes.
A Backlog That Could Delay All Crypto ETF Decisions
This disruption extends far beyond XRP. Multiple crypto ETF filings, including Bitcoin and Ethereum proposals, are also stuck in review. Once the government reopens, the SEC will face a significant backlog, forcing prioritization and causing further delays across the board.
Industry analyst Vincent Van Code has advised patience, noting that it may take several weeks after the government reopens before any ETF approvals resume. He explained that compliance checks and administrative recoveries take time, making quick decisions unlikely even after operations restart.
Market Analysts Weigh In as XRP Interest Shifts
Meanwhile, Chad Steingraber, a well-known crypto pundit, recently reignited discussions within the XRP community. In a bold post, he declared, “We are ready to rock,” after XRP futures open interest dropped to its lowest level in 2025. The figure reportedly fell to around $3.49 billion, while XRP’s price hovered near $2.36.
According to Steingraber, this decline signals that the market may have bottomed out, offering traders a potential opportunity. His upbeat statement was met with cautious optimism as many interpreted it as a sign of strength during uncertain times.
Chris Widmer of Chain.Reach provided a contrasting perspective, explaining that the dip in open interest reflects reduced speculative activity. He added that such phases typically suggest a consolidation period, allowing traders to reassess positions and prepare for the next market shift.
The Waiting Game for XRP ETF Approvals
The XRP community continues to watch developments closely, balancing optimism with realism. The SEC shutdown has frozen all progress, and even after it ends, a wave of backlog could further delay approvals. At the moment, the dream of an XRP ETF remains on hold as investors await signs of movement from Washington.
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