Capitol Gains: Shutdown blues slow crypto work

The US government shutdown has raised concerns in the crypto industry regarding the impact on pending regulatory matters, notably the crypto market structure bill, the GENIUS Act, and the approval of spot crypto ETFs. The Securities and Exchange Commission has announced that it will not review or approve new registration statements during the shutdown, leading to delays in spot crypto ETFs. Meanwhile, the Senate Banking Committee is expected to work on the Responsible Financial Innovation Act of 2025 despite the shutdown. While the markup hearing was delayed due to budget issues, progress is anticipated. Concurrently, the Senate Finance Committee discussed crypto tax policy, emphasizing the importance of clear tax rules for market stability. On the stablecoin front, the recently passed GENIUS Act has complicated implementation as federal and state regulators now face the task of establishing new rules amidst limited staffing. Tensions between banks and crypto companies remain over stablecoin yields, highlighting a contentious regulatory environment.

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