As the U.S. shutdown ends, crypto regulation could finally move forward
After weeks of political gridlock, can Washington finally get crypto regulation back on track?
It’s been a tense few weeks in Washington. With the U.S. government shutdown stretching into its third week, Republicans and Democrats remain locked in a political tug-of-war over the national budget. As both sides dig in, around 1.4 million federal employees are either furloughed or working without pay, and several government operations have gone dark.
Budget fights aren’t new in American politics, but President Donald Trump’s push to downsize the federal government has turned this one into something bigger, perhaps another front in his agenda. And while the budget impasse has disrupted everyday services, its ripple effect has reached even further, right into the crypto markets.
The shutdown has quietly stalled some of the most anticipated developments in the digital asset space, especially around crypto ETFs. Proposals tied to Litecoin (LTC), XRP, and Solana (SOL) have been sitting on the SEC’s desk waiting for review. But with much of Washington at a standstill, those decisions have been delayed yet again.
David Adubiina
It’s not just ETFs either. Broader crypto policy talks have also frozen. Just weeks before the shutdown began, U.S. lawmakers met with Michael Saylor and several industry leaders to discuss Trump’s proposed Strategic Bitcoin Reserve and the BITCOIN Act—a bill backed by Senator Cynthia Lummis aimed at promoting Bitcoin adoption in a budget-neutral way. Those discussions were expected to shape the next phase of U.S. crypto regulation. Instead, they’ve been left hanging.
Still, there may be movement ahead. According to CNBC, Kevin Hassett, one of Trump’s top candidates to replace Jerome Powell as Federal Reserve chair, said the shutdown could end sometime this week. Once government operations resume, ETF reviews could restart, and lawmakers may finally pick up where they left off.
Ultimately, Washington’s budget battle didn’t just freeze paychecks; it froze crypto progress too. And while there’s cautious optimism that U.S. crypto policy could regain momentum soon, not everyone’s convinced. On Polymarket, bettors are pricing in a 71% chance that the shutdown extends past 30 days, pushing it to at least October 31.
That kind of uncertainty casts a long shadow. Because even as officials like Hassett talk up confidence, the reality is that crypto’s next big steps, from ETF approvals to broader regulation, remain tied to the same gridlock that’s held Washington back for weeks. And if this political standoff drags on much longer, the wait for real regulatory progress could outlast the market’s patience.
David Adubiina
