Hopes for a landmark October rollout of spot cryptocurrency exchange-traded funds ( ETFs ) have been dealt a major setback, with altcoins including XRP caught in regulatory gridlock. The delay stems from a combination of procedural changes at the Securities Exchange Commission (SEC) and the ongoing U.S. government shutdown. In the days leading up to the shutdown, the SEC approved generic listing standards that eliminate the need for case-by-case 19b-4 filings. In this case, exchanges were instructed to withdraw their pending applications under the old system, paving the way for a more streamlined framework that would speed up approvals once operations resumed. Stalled ETF momentum For now, however, cryptocurrency journalist Eleanor Terrett noted that the shutdown has stalled that momentum. With large portions of the SEC’s workforce furloughed, the agency is limited to handling fraud cases and emergencies, leaving routine but essential processes, such as sign-offs from the Division of Corporation Finance, on hold. Without that clearance, trading for proposed spot ETFs tied to XRP, Solana , and Litecoin cannot begin, regardless of the new rules. The delay is excruciating for investors who saw October as a breakthrough month, with altcoin ETFs expected to fuel demand and legitimize digital assets. Crypto ETF approval season has officially arrived! https://t.co/85h74ZZ7LS — Eric Balchunas (@EricBalchunas) September 30, 2025 Notably, U.S. investors already have access to an XRP ETF through REX-Osprey, which received expedited approval under the Investment Company Act of 1940, cutting its review period to about 75 days compared to the 240-day process under the Securities Act of 1933. Overall, this setback comes as the broader cryptocurrency market regains bullish momentum led by Bitcoin, with many investors shrugging off the effects of the Washington shutdown. XRP price analysis At press time, XRP was trading at $3 after a slight 1.8% correction in the past 24 hours. On the weekly chart, the token is still up nearly 10%. XRP seven-day price chart. Source: Finbold Analysts suggest a spot ETF approval could drive significant institutional inflows, with some projecting a potential rally toward $10. Featured image via Shutterstock The post XRP spot ETF approval for October suffers major setback appeared first on Finbold .
