The SEC and CFTC are set to resume operations, and progress is expected in ETF applications and cryptocurrency spot leverage trading

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are set to resume operations after a 43-day government shutdown. According to the operational plans of both agencies, employees will return to their posts on "the next regular workday after the appropriations bill officially takes effect."

During the government shutdown, both agencies significantly reduced their workforce, and operations nearly came to a halt. The SEC's review capacity was severely limited, particularly with respect to the approval of applications for exchange-traded funds (ETFs), including those related to cryptocurrencies, which essentially came to a standstill. The CFTC "stopped the vast majority of its operations," including enforcement, market oversight, and regulatory rulemaking. After the government reopens, the SEC and CFTC will need some time to address the backlog of matters, including registration applications submitted during the past 43 days.

Some cryptocurrency companies learned towards the end of the shutdown that it was about to end and rushed to submit IPO and ETF applications. SEC Chair Atkins recently revealed that the SEC plans to "establish a token taxonomy" in the coming months, anchored by the Howey test. CFTC Acting Chair Pham stated that the commission has been pushing for the approval of leveraged spot cryptocurrency trading as early as December.