The impending government shutdown in the United States is likely to negatively impact the hopes of the crypto industry in Washington, D.C. During the last government shutdown, approvals for crypto companies were delayed, and regulatory acceptance of cryptocurrencies was slowed down. This time, the shutdown appears to be even more complicated than before, as the House of Representatives is not close to reaching a deal to keep the federal government running in the short term. This dissatisfaction from House Speaker Kevin McCarthy’s right flank decreases the chances of a continuing resolution to pay federal employees.
Despite the potential setbacks, the shutdown may not spell doom for crypto projects. However, there are concerns regarding civil and bankruptcy court cases, as well as the limited litigation team at the Securities and Exchange Commission (SEC) during the slowdown of the courts. The progress of crypto legislation is also likely to be slowed or halted entirely during this period. Although crypto bills already face limited chances of passing, the shutdown further hampers their potential.
While the impact of the government shutdown on the crypto industry remains uncertain, it highlights the challenges that arise when cryptocurrency intersects with government regulations. The shutdown’s repercussions could have implications for the industry’s growth and regulatory progress.