U.S. Government Shutdown Threatens Crypto Policy Momentum

The U.S. government is barreling toward a potential shutdown, a development that could stall cryptocurrency legislation and regulatory efforts. While the shutdown won't directly impact crypto markets, the resulting gridlock in Washington D.C. may delay critical policymaking.

Market structure legislation faces three pressing questions: whether Congress will pass a bill, the timeline for such action, and how a government shutdown might disrupt the process. The current political standoff—with Republicans controlling the WHITE House and Congress but needing Democratic support—has reached an impasse after failed negotiations.

Regulators' rulemaking could also face delays, though the severity depends on the shutdown's duration. The crypto industry, already grappling with regulatory uncertainty, may see its Washington momentum further eroded.