A looming US government shutdown threatens to significantly disrupt the anticipated growth trajectory of XRP, a major cryptocurrency. As political gridlock in Washington escalates, the probability of federal agencies losing funding has soared, creating a ripple effect that could undermine key milestones for XRP and the broader crypto market, just as significant momentum was building.
Regulatory Roadblocks for XRP
The impending shutdown directly jeopardizes critical regulatory processes vital for XRP's market expansion. With federal agencies like the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) facing reduced staffing or halted operations, reviews for numerous spot crypto Exchange-Traded Funds (ETFs) — including those linked to XRP — are likely to be delayed. These ETF applications, from major players like Grayscale and 21Shares, have October deadlines, and their approval is seen as crucial for lowering investment barriers and driving new institutional and retail capital into XRP. Any interruption in this regulatory workflow could therefore stall crucial market momentum.
Ripple's Strategic Setbacks
Beyond ETF delays, the shutdown poses a second significant challenge for XRP's ecosystem, specifically for its developer, Ripple. The company is actively pursuing a US national bank charter, a strategic move deemed essential for establishing robust, dollar-linked payment rails. This application requires rigorous review by the Office of the Comptroller of the Currency (OCC). A prolonged government shutdown would inevitably pause these assessments, pushing back a pivotal milestone in Ripple’s ambitious US expansion strategy and adding further uncertainty to XRP's future in the American market.
