SEC closure suspends approvals, retail traders face uncertainty

Commissioners at the U.S. Securities and Exchange Commission have partially suspended operations after government funding was cut off. Most staff have been instructed to secure their jobs. Only a limited number of employees are available to respond to emergencies, such as threats to life or property. Day-to-day operations such as enforcement actions, rulemaking, and registration reviews will be suspended.

For individual CFD traders, the closure brings further uncertainty. Pending routine approvals and regulatory oversight, access to new products such as exchange-traded funds linked to cryptocurrencies may be delayed.

“The initial impact on retail traders has been cautious, but as major equity indexes continue to rise, and we see trends in cryptocurrencies and precious metals, we are seeing an increase in risk appetite, opting to buy into trends rather than range trading against them,” said Monte Saffieddin, head of MENA market research at Capital.com.

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This uncertainty could lead to more cautious trading behavior by some retail investors, such as reducing leverage or avoiding new positions until the SEC resumes normal operations. At the same time, continued market volatility may prompt other companies to take advantage of short-term price movements, reflecting a mix of caution and opportunism among retail participants.

🚨 Just in: The U.S. government shutdown forced the SEC to operate with skeleton staff.

Reviews and approvals for crypto ETFs have been suspended until funds are returned. pic.twitter.com/jtK74QGW9s

— Real World Asset Watchlist (@RWAwatchlist_) October 6, 2025

Gold surges amid uncertainty

“One of the main drivers of the rise in gold prices is definitely the U.S. government shutdown,” said Dilin Wu, research strategist at Pepperstone.

Amid the government shutdown and global “de-dollarization” trend, gold prices rose above $3,900. Over the past week, prices continued to rise. On Monday morning, gold crossed the $3,900 milestone and reached a new record.

“The shutdown had a direct impact on the release of economic data, delaying Friday’s non-farm payrolls report, which is a key indicator of the cooling of the US labor market and the pace of Fed rate cuts. The lack of data has created a ‘data vacuum’, increasing the attractiveness of gold as a safe-haven asset,” Wu added.

Delay in approval of virtual currency ETF

The SEC closure is also impacting ETFs linked to cryptocurrencies. Applications for products related to Solana, XRP, and Litecoin remain pending. The SEC’s electronic filing system, EDGAR, continues to accept submissions, but they are not formally reviewed or approved.

Analysts said the suspension could delay the launch of some crypto ETFs that were expected to start trading soon, leaving investors and fund managers in a state of uncertainty.

I can’t see the end

There is currently no end date set for the U.S. government shutdown. Lawmakers have not yet reached a funding agreement. The SEC said staff will return on their next scheduled work day after the spending bill is enacted. Until then, routine regulatory oversight and approvals will remain limited.