US Government Shutdown Nears Fourth Week as Senate Votes and Crypto Agenda Gains Momentum
- How Long Has the US Government Been Shut Down?
- What’s Happening with Crypto Regulation During the Shutdown?
- How Is the Shutdown Affecting Crypto ETFs?
- Where Are Investors Turning Amid the Uncertainty?
- What’s Next for Crypto Legislation?
- Frequently Asked Questions
As the US government shutdown drags into its fourth week, lawmakers are scrambling to resolve the funding impasse while also addressing critical issues in the digital asset sector. The Senate is set for another vote to reopen the government, and Democrats are pushing forward with plans to meet crypto executives to discuss the stalled market structure bill. Meanwhile, the SEC’s limited operations are delaying key crypto ETF approvals, and investor sentiment shifts toward bitcoin and gold amid the uncertainty.
How Long Has the US Government Been Shut Down?
The current shutdown, which began on October 1, 2025, is now one of the longest in US history, trailing only the 1995 and 2018-2019 shutdowns in duration. The Senate is scheduled to vote at 5:30 p.m. ET on Monday—its eleventh attempt to end the stalemate. If successful and approved by the president, federal agencies will reopen. Another failure, however, WOULD prolong what’s already a historic disruption.
What’s Happening with Crypto Regulation During the Shutdown?
Despite the political gridlock, crypto policy discussions are still moving forward. Senate Democrats are organizing a roundtable with top executives from major crypto firms, including Kraken, Coinbase, Ripple, Circle, and others, to discuss the long-stalled US crypto market Structure Bill. Senator Kirsten Gillibrand is leading the meeting, which aims to explore alternatives to the House’s CLARITY Act, passed in July. Critics argue the Senate’s counterproposal could harm DeFi and undermine bipartisan momentum.
How Is the Shutdown Affecting Crypto ETFs?
The SEC, operating with limited staff, has delayed several pending ETF applications. The first missed deadline was on October 2 for Canary’s proposed Litecoin ETF. Bloomberg analyst Eric Balchunas noted that both Litecoin and HBAR ETFs appear ready for approval but are likely postponed due to the shutdown. October was expected to be a decisive month for crypto ETFs, with up to 16 filings awaiting decisions, including those tied to Solana, XRP, Dogecoin, and other assets. Major issuers like Bitwise, CoinShares, Grayscale, Fidelity, and BTCC have submitted updated applications, many including staking provisions.
Where Are Investors Turning Amid the Uncertainty?
The prolonged shutdown and ongoing regulatory ambiguity seem to be driving some investors toward Bitcoin and gold. However, Bitcoin has remained in negative territory for most of the past three months, trading around $107,790 at the time of writing. Data from CoinMarketCap shows a slight uptick in BTC holdings as traders hedge against political instability.
What’s Next for Crypto Legislation?
The Senate’s market structure bill is designed as a counterpoint to the House’s CLARITY Act, aiming to establish a comprehensive federal framework for digital assets. The outcome of this week’s roundtable could determine whether the bill gains traction or faces further delays. Meanwhile, the shutdown’s Ripple effects continue to disrupt the crypto industry, from stalled ETF approvals to deferred regulatory clarity.
Frequently Asked Questions
How long has the US government been shut down?
The shutdown began on October 1, 2025, and is now in its fourth week, making it one of the longest in US history.
What crypto ETFs are being delayed?
Approvals for Litecoin, HBAR, and other crypto ETFs are on hold due to the SEC’s limited operations during the shutdown.
How is the shutdown affecting Bitcoin’s price?
Bitcoin has remained around $107,790, with some investors turning to it and Gold as hedges against political uncertainty.
