U.S. Government Shutdown May Soon End, Impacting XRP ETF Filings
In a positive development for the cryptocurrency sector, a key adviser to former President Trump has indicated that the ongoing U.S. government shutdown may come to an end this week. Kevin Hassett, White House economic adviser, shared insights during a recent CNBC interview, suggesting that negotiations among moderate Democrats could lead to a compromise that would allow the government to reopen. This reopening could signal a resumption of regulatory approvals, particularly for pending XRP ETF filings awaiting the U.S. Securities and Exchange Commission (SEC).
White House Advisor Signals Potential Resolution
Kevin Hassett, a prominent advisor within Trump’s circle and a potential candidate for the Federal Reserve chair position in 2026, has also argued that the deadlock around the budget—often referred to as the "Schumer shutdown"—could be resolved shortly. This situation stems from tensions surrounding Senate Minority Leader Chuck Schumer, who Republicans have largely held responsible for the impasse. Hassett emphasized that if government operations resume, the usual decision-making processes can recommence, including vital discussions surrounding cryptocurrency regulations.
Bipartisan Talks on Cryptocurrency Legislation
As the government shutdown lingers, positive discussions are still taking place within the crypto community. Democratic senators are slated to convene this week with representatives from prominent cryptocurrency companies such as Coinbase, Circle, and Ripple. The objective of these meetings is to foster bipartisan support for the proposed U.S. crypto market structure bill. The session aims to redefine the existing regulations around digital assets and explore cooperative paths to advance this most pressing legislative agenda.
XRP ETF Filings Await Approval
The prolonged government shutdown has forced the SEC to cut back its operational capacity, leading to a temporary pause in the evaluation of newly filed financial products, including various cryptocurrency-based funds. This situation has significant implications for the XRP ETF filings, as all decisions are currently on hold until Congress passes a funding bill. Notably, the SEC is expected to revisit and review six XRP ETF applications once federal operations resume.
Institutional Interest Remains Strong
Despite the logistical challenges posed by the shutdown, institutional interest in cryptocurrency ETFs remains considerable. According to Rick Wurster, CEO of Charles Schwab, the firm’s clients hold approximately 20% of all cryptocurrency ETFs available in the U.S. Such figures underscore the enthusiasm for digital assets, even amid regulatory uncertainties. Additionally, over the past year, traffic to Schwab’s crypto investment portal has surged by 90%, indicating a mounting public interest in cryptocurrencies.
Growing Number of New ETF Applications
Recent trends also suggest that major asset managers are preparing for a spike in regulatory activity following the end of the shutdown. The SEC received more than five new crypto ETF applications in just the last week, demonstrating a strong desire among established financial players to enter the cryptocurrency arena. This proactive approach highlights the anticipation for eventual approvals which, once granted, could lead to increased participation and investment in the digital asset market.
In conclusion, the intersection of government functionality and cryptocurrency regulation is particularly sensitive at this time. With hints of the shutdown potentially concluding imminently, all eyes are on the SEC and its subsequent actions regarding XRP ETFs. The ongoing discussions within bipartisan circles and among prominent crypto stakeholders signal positive momentum that could redefine the regulatory landscape of digital assets in the U.S.
