Some of Crypto’s Momentum in Washington DC has stopped, a situation that could get worse if the US government shuts down next week.
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The story
The US government seems to be going against a shutdown. Although it does not directly affect crypto, the reverberation of the government that shuts down will affect decision making in the crypto world.
Why it matters
There are three major questions right now when it comes to market structure legislation: Will Congress adopt a Bill; When can Congress adopt a Bill; And how does a government’s shutdown affect this process?
In addition to only Congress, a shutdown can affect the regulators’ regulators, although it may not be such a big question at the moment (depending on how long the closure lasts).
Breaks down it
Until September 30, 2025 – in other words, Congress has Tuesday – to adopt a budget bill or at least a continued decision that would continue to finance the government. Republicans control the White House, the House of Representatives and the Senate, but they still need some democratic support to move a budget bill. Senate minority leader Chuck Schumer and House Minority Leader Hakeem Jefferies seemed to be ready to meet and negotiate with President Donald Trump, but Trump canceled the meeting earlier this week. And on Friday, Punchbowl News reported that the representative’s leadership may not bring the body back into the session at all before the Senate adopts a bill.
A shutdown is likely to slow down progress with crypto -market structure legislation. The chances of market structure that do it through Congress and for the president’s desk this year are already growing slim, even without the threatening shutdown threat, according to several people I spoke to this week. A scheduled marking consultation for the Senate Bank Committee’s draft bill was pushed from its preliminary September 30 to the end of October, and the Senate Agricultural Committee has not yet published any draft legislation. Any bill relating to market structure would need support from both committees before moving to the total Senate and then the House of Representatives.
The persons said they still expected to see progress next year if Congress is unable to move the market structure proposal through the Senate and the house by December 31.
However, these chances become more slim in the light of a closure. Locking the federal government is often remedied with fast, short -term expenses that only push the drama for a few weeks or months further down the road and promise future congress bindings.
If the government is shutting down, the Senate Committees may be pushing plans back to a markup, the Blockchain Association Senior Director of Government Relations Jessica Martinez said.
“While there has been good faith -negotiation on both sides, a shutdown would stop critical progress in cryptopolitics,” she said in a statement. “Despite a possible delay, our leaders in Congress are obliged to get top -art market structure legislation across the finish line.”
Kristin Smith, the president of the Solana Policy Institute, said she was optimistic that the legislation would continue to receive Bipartisan attention and said that a shutdown would be a “setback, but it is clear [lawmakers] Stay engaged ”to adopt a market structure bill.
Senator Kirsten Gillibrand (DN.Y.), who spoke in Coindesk’s policy and regulatory event earlier this month, has already tried to shut down expectations that Congress had to act in late September, a deadline previously set by the Senate’s bank committee chairman Tim Scott.
“I don’t want to put an artificial deadline on anything because we are in the middle of the negotiations on whether we want a top -art budget,” she said. “The most important question that Congress is dealing with right now is the fiscal cut on September 30. It is a much more important time limit that the whole country depends on … I really encourage you, please do not give the market structure an artificial deadline because it is so important to this industry that we get this and that we do it on a bipartisan basis.”
The bright spot for the crypto industry can come from the regulators. While the federal supervisory authorities-Securities and Exchange Commission, the Commodity Futures Trading Commission and the Treasury Department units-all have to stop something non-critical, a lot of the ongoing regulatory decision effort has already been made. Some of these efforts are in the public comment phase.
Didier Lavallee, CEO of the Canadian company Tetra Digital, said in a statement that a closure could affect SEC chairman Paul Atkins’ agenda “in the medium term,” but the momentum around Crypto Policymaking is still enjoying Bipartisan support.
“So while there may be short -term delays in political timelines, it is unlikely that the fundamental derogation in the long term,” he said.
Monday
- 17:00 UTC (13:00 ET) SEC and CFTC have a common round table on September 29, 2025 to discuss ways to reconcile their regulatory effort.
Tuesday
- Post-court cases in the Department of Justice’s case against Roman Storm are due. As a reminder, Storm was convicted of having the conspiracy to serve an unlicensed money sends last month, but the jury did not convict him of two other charges.
If you have thoughts or questions about what to discuss next week or any other feedback you would like to share, feel free to e -mail me at [email protected] or find me at bluesky @nikhileshde.bsky.social.
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See you next week!
