The United States government shutdown is nearing its fourth week, putting pressure on lawmakers to resolve the funding impasse while also addressing key issues in the digital assets sector. As the Senate prepares for another vote to reopen the government, Democratic senators are moving forward with plans to meet crypto executives to discuss the stalled market structure bill.
In Brief
- •The U.S. government shutdown nears its fourth week, with another Senate vote set to determine whether agencies can reopen.
- •Despite the gridlock, Senate Democrats plan a roundtable with crypto executives to discuss the stalled market structure bill.
- •The SEC’s limited operations amid the shutdown delay key crypto ETF approvals, including Litecoin and HBAR filings.
- •Lawmakers debate competing crypto regulation bills as investor sentiment shifts toward Bitcoin and gold during the shutdown.
Political Stalemate Fails to Halt Crypto Policy Momentum in Washington
The Senate is set to vote at 5:30 p.m. ET on Monday, marking the 11th attempt to end the shutdown. If the vote succeeds and receives presidential approval, federal agencies would reopen. On the other hand, another failure would prolong what is already one of the longest government shutdowns in U.S. history.
The current impasse, which began on October 1, now trails only the shutdowns of 1995 and 2018–2019 in duration.
Despite the gridlock, lawmakers continue to engage in policy discussions outside the budget debate. On Wednesday, Senate Democrats are expected to host a roundtable with top executives from major crypto firms, including Kraken, Coinbase, Ripple, Circle, and others.
Market Structure Debate Heats Up as Lawmakers Weigh Competing Bills
Senator Kirsten Gillibrand is leading the meeting, which aims to explore the long-stalled U.S. crypto market structure bill. The discussion follows the introduction of a Democratic counterproposal to the market structure bill earlier this month.
Critics argue that the proposal could harm decentralized finance (DeFi) and undermine bipartisan momentum behind the House’s CLARITY Act, which passed in July.
The Senate bill is intended as a counterpart to the CLARITY Act, designed to establish a comprehensive federal framework for digital assets and provide regulatory clarity for crypto businesses operating in the United States.
Government Shutdown Stalls Progress on Key Crypto ETF Filings
While lawmakers debate digital asset regulation, the ongoing government shutdown has slowed progress on another major development in the crypto sector—exchange-traded funds (ETFs). The Securities and Exchange Commission (SEC), which oversees ETF approvals, has been operating with limited staff, delaying several pending applications.
The first missed deadline occurred on October 2 for Canary’s proposed Litecoin ETF. Bloomberg analyst Eric Balchunas later noted that Canary’s Litecoin and HBAR ETFs appear ready for approval but are likely postponed due to the shutdown.
October was expected to be a pivotal month for crypto ETFs, with as many as 16 filings awaiting decisions, including those tied to Solana, XRP, Dogecoin, and other assets. Major issuers, including Bitwise, CoinShares, Grayscale, Fidelity, Canary Capital, and VanEck, have all submitted updated filings that include staking provisions.
Meanwhile, the prolonged shutdown and ongoing regulatory uncertainty appear to have shifted some investor sentiment toward Bitcoin and gold. However, Bitcoin has stayed in negative territory for most of the past three months, trading near $107,790 at the time of writing.