Sep 27, 2023

CoinDesk's global policy and regulation managing editor Nikhilesh De weighs in on the potential government shutdown and how it could impact the pending spot bitcoin ETF applications.

Video transcript

This is going back to you remember the last shutdown in 2019, 2018, 2019, which was, I think at the time, the longest government shutdown in us history. Uh We saw the SEC, you know, find someone and just have them tell the applicant withdraw your fund, it's not getting approved and we're not around to delay, you know, delay the decision. Um I think we're seeing the SEC already preemptively start to kick back some of these decisions to their next deadlines. We saw it too yesterday with our play one shares and Global X uh the SCC just published the standard, you know, we want more time documents like a month early uh or a couple of weeks early. So, you know, the SEC is not gonna allow these things to be approved just because no one's, you know, at the desk, they're gonna continue pushing these out, but it's definitely gonna be uh kind of a, you know, it, it's a jam, right? If you're a regulator, you're reviewing or comments and whatever and you know, I'm sure the industry has this idea that the SCC is going to ultimately reject these applications anyway. But still the SEC staff has to, you know, review the comments, review the application and then make all the, you know, analysis and such and they're now losing and they're going to lose a good chunk of time in which to do that. So, you know, we're gonna see ETF applications delayed. Uh We're gonna see, um, you know, for example, uh there are a number of active sec cases and while litigation continues, the courts remain open and I'm sure the SCC has a litigation team that will continue that process will probably still slow down as well. So if you're a company getting sued by the SEC and you want to resolve the legal issue quickly, you're gonna be affected by this, you know, shutdown.

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