State of Crypto: What Happens to Crypto if Government Shutdown Lingers

The U.S. government shutdown that began on October 1, 2025, has furloughed non-essential federal employees and has significant implications for cryptocurrency regulation. A short shutdown is not expected to greatly impact efforts in Washington, D.C., but if it continues, it could lead to longer delays for key regulatory actions, particularly regarding exchange-traded funds (ETFs) that crypto advocates are eagerly awaiting. Market structure legislation and other federal rule-making could face obstacles as lawmakers cannot access feedback from furloughed regulatory agencies. Industry experts believe that while December remains a feasible target for passing new crypto legislation, partisan tensions may complicate progress if the shutdown lingers. Currently, there are no planned hearings or legislative events pertaining to cryptocurrency this week, indicating a standstill in policymaking efforts due to the shutdown.

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