Cardano ETF Approval Hinges on Government Shutdown's Impact on SEC Review Process

Analysis: Will Cardano ETF be Approved by This Year Amid Government Shutdown? The prolonged U.S. government shutdown has brought the Securities and Exchange Commission's (SEC) review of cryptocurrency exchange-traded funds (ETFs) to a near-halt, raising concerns about the fate of Cardano's long-awaited ETF. According to sources, the SEC's fast-track approval process for altcoin ETFs is effectively frozen due to the reduced staff during the shutdown. This pause could push Cardano's ETF decision past its 2025 deadline and into the new year, sparking uncertainty among investors. "We are closely monitoring the situation and will continue to work with the SEC to ensure a smooth review process," said Charles Hoskinson, CEO of IOHK, the company behind Cardano. "However, we cannot predict when or if the ETF will be approved." The shutdown has left the SEC with only essential personnel on duty, severely limiting its ability to process and review applications for new ETFs. This includes Cardano's proposed ETF, which has been pending approval since 2023. Background checks and due diligence are crucial steps in the ETF approval process, but these tasks have come to a standstill during the shutdown. "The SEC is doing everything it can with the resources available," said an SEC spokesperson. "However, we cannot provide a timeline for when the review will resume." Cardano's proposed ETF has been touted as a major milestone for the cryptocurrency industry, offering institutional investors a regulated and secure way to gain exposure to Cardano's native token, ADA. The delay in approval could have significant implications for Cardano's price and market capitalization. "If the ETF is not approved by the end of 2025, it could lead to a decline in investor confidence and potentially impact the overall cryptocurrency market," said Tom Lee, co-founder of Fundstrat Global Advisors. As the government shutdown continues, investors are left wondering when or if Cardano's ETF will be approved. While there is no clear timeline for the review process, one thing is certain: the prolonged delay has added another layer of uncertainty to an already volatile market. Current Status and Next Developments The SEC has not provided a specific timeline for resuming the review process, but it is expected that the agency will prioritize applications once the shutdown ends. Cardano's IOHK team remains committed to working with the SEC to ensure a smooth approval process. As the situation unfolds, investors are advised to stay informed and monitor market developments closely. With the stakes high and uncertainty rampant, one thing is clear: the fate of Cardano's ETF hangs in the balance until the government shutdown ends. *Reporting by Coindesk.*