The U.S. government shutdown that commenced on October 1, 2025, has now extended into its second month, raising concerns over its far-reaching impacts on legislative priorities, particularly in the realm of cryptocurrency regulation. As of now, this shutdown is noted as the second-longest in American history, trailing only behind the record of 35 days set during a previous standoff in 1995-1996.
If the impasse persists through this upcoming Wednesday, it will surpass that historical benchmark, deepening the strains on various government functions and legislative agendas. This prolonged closure has already led to missed deadlines, significantly affecting the timeline and progression of critical bills concerning cryptocurrency.
Congress has already missed multiple deadlines, the most recent being an October 20 markup hearing intended for market structure legislation central to crypto regulation. With bills lingering in legislative limbo due to the shutdown, the prospect of advancing any meaningful regulatory framework before year’s end seems increasingly unrealistic.
Urgent Need for Legislative Progress
The current political deadlock in Washington has pushed crypto policy down the legislative priority list. Ron Hammond, Head of Policy and Advocacy at Wintermute, noted that as the year’s end approaches, lawmakers will encounter a multitude of competing priorities, with the National Defense Authorization Act ranking as a critical must-pass bill.
However, amidst this uncertainty, there remains a thread of cautious optimism among some political insiders. The draft market structure bill from the Senate Agriculture Committee is emerging as a significant focal point. Should the shutdown resolve relatively soon, a markup hearing for this draft could potentially be scheduled around Thanksgiving.
This timeline depends heavily on the resolution of the ongoing shutdown, as each day pushes legislative discussions further into the future, limiting opportunities to address pending crypto bills alongside other essential legislative matters.
Potential Political Shifts
Recent judicial interventions may alter the dynamics surrounding the government shutdown. Two federal judges have directed the Trump Administration to reinstate Supplemental Nutrition Assistance Program (SNAP) benefits, regardless of the shutdown’s status. This development could influence Democratic negotiations, potentially swaying their position on market structure legislation.
As discussions unfold, a significant upcoming electoral event could also reshape priorities. Voters in Virginia and New Jersey prepare to cast ballots for various local and statewide positions, adding another layer of complexity to the political landscape.
Moreover, critical court hearings are scheduled in the coming days, including an appeal involving Sam Bankman-Fried’s conviction for fraud, which may capture further headlines and influence public discourse surrounding the cryptocurrency space.
As the shutdown continues, observers within the crypto community await news with bated breath, hoping for a breakthrough that will revive efforts to establish a clearer regulatory framework for the dynamic and evolving cryptocurrency market.
