Shutdown Crisis Nearing Resolution
Signals suggest that the budget impasse, which has caused the U.S. government shutdown, may be resolved this week. Statements from White House economic advisor Kevin Hassett are considered crucial for the reopening of federal agencies and the subsequent reassessment of XRP ETF applications.
In an interview with CNBC, Kevin Hassett, a prominent member of the Trump administration, expressed optimism regarding the conclusion of the government shutdown, which Republicans attribute to actions by Schumer. Hassett indicated that a consensus among moderate Democrats could facilitate the reopening of government operations.
Hassett, who is considered a strong contender for the Fed Chair position following Jerome Powell in 2026, highlighted the necessity of reopening the government to ensure the smooth continuation of negotiations. He also alluded to the possibility of the Trump administration taking more assertive measures if the deadlock persists.
Hassett is a long-time proponent of blockchain and cryptocurrency technologies, notably holding over one million dollars in Coinbase shares. Despite the ongoing government shutdown, the regulatory processes for cryptocurrencies are continuing. Sources confirm a planned meeting between Democrat senators and representatives from Coinbase, Circle, and Ripple. The primary focus of this meeting will be on U.S. cryptocurrency market legislative proposals and opportunities for bipartisan collaboration.
Resumption of XRP ETF Approval Process
Due to the budget impasse, the SEC, the U.S. financial market regulator, reduced its operational capacity, leading to a temporary halt in the evaluation of new products. This suspension affected the review of numerous financial products, including XRP ETF applications.
With the anticipated end of the shutdown, the SEC is expected to resume its review of XRP ETF applications from significant entities such as Grayscale, 21Shares, Bitwise, Canary Capital, CoinShares, and WisdomTree. Despite these delays, experts maintain that institutional investor interest remains robust.
According to data compiled by Charles Schwab CEO Rick Wurster, approximately 20% of cryptocurrency ETFs in the U.S. are held within the portfolios of corporate clients. Schwab's cryptocurrency portal has seen a 90% surge in traffic over the past year, coinciding with five new cryptocurrency ETF applications submitted to the SEC just last week. This increase in portal traffic suggests expectations of accelerated regulatory momentum once the government reopens.