Regulation
|3 min ReadUS shutdown day one stalls SEC and crypto ETF reviews
Maya Chen
Senior Analyst
Published
Jan 16, 2026
Skeleton crew at the SEC, systems on dim
Day one of the US government shutdown hit the Securities and Exchange Commission fast. By Wednesday, most staff were told to secure their work and prepare for a pause. About nine hours after Congress failed to keep the money flowing, the SEC said it was running on its August plan. That plan keeps an extremely limited number of staff and shifts many systems to modified conditions. The message is simple. The regulator stays open, but only barely.
In a Wednesday notice on X, the agency pointed to its formal operations blueprint. The document, available on sec.gov, spells out who stays and what runs under the shutdown. The first workday is for shutdown tasks. Non-excepted staff lock down workstations, secure materials, and get ready to restart quickly when funding returns. That is the playbook, and they are following it. You want order in a mess. This is it.
What the SEC can do, and what it cannot
For crypto, the rules are tight. The SEC said it will not engage in ongoing litigation unless it is an emergency or there is a threat to property. That likely pauses enforcement actions against crypto firms until the shutdown ends. Registration reviews stop. Non-emergency rulemaking stops. Oversight of self-regulatory organizations is off the desk. Non-emergency help to foreign regulators is off too. The electronic filing system will still accept submissions. But acceptance is not review. Submissions pile up.
That means crypto ETFs wait. Several Solana ETFs are in the queue, and many expected sign-offs for US exchanges by mid-October. That timeline can slip during a shutdown. Investors know the drill. When the referee leaves the floor, the game slows.
Related: US government shutdown may signal crypto market bottom: Analysts
According to the SEC’s formal plan, the agency will operate with “an extremely limited number of staff,” and many systems will run “under modified conditions.” You can read the plan here: SEC Operations During a Lapse in Appropriations.
Source: Kristin Smith
No deal in Congress, no quick restart at the SEC
There is no funding deal yet. Speaker Mike Johnson said the House will return next week, but Republicans are not open to changes in their proposed bill. Democrats are holding the line, pushing to reverse healthcare cuts from a GOP-backed budget law signed in July. Gridlock holds. Markets listen. Agencies wait.
The SEC’s plan is clear about the endgame. Employees return on the next regularly scheduled workday after appropriations legislation is enacted. Until then, enforcement sleeps, rulemaking rests, and ETF reviews wait in line. The agency accepts filings, but the real work is on hold. This is the classic Washington freeze. It is not permanent. It is powerful. And everybody knows it slows everything down.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.