Second-Longest Government Shutdown Puts Crypto Market Structure Bill at Risk
The US government shutdown has entered its 22nd day, marking the second-longest federal closure in history. This political stalemate has effectively stalled progress on critical crypto market structure legislation, leaving the industry in regulatory limbo.
A leaked Democratic proposal mandating KYC and AML regulations for DeFi platforms ignited fierce backlash this week. The controversy escalated during Wednesday's heated Senate roundtable, where industry leaders clashed with lawmakers over the CLARITY Act. Democratic senators went so far as to accuse crypto representatives of functioning as Republican proxies.
Despite the gridlock, Representative Bryan Steil maintains Optimism about the market structure bill's timeline, projecting a 2026 signing. Meanwhile, the SEC's crypto-related operations face significant disruptions, with ETP approvals, IPOs, and market proposals frozen in bureaucratic purgatory.
