U. S. Government Shutdown: Crypto Laws in Limbo
The U.S. government shutdown, now in its third week, is causing widespread disruption, including casting a shadow over the future of crypto laws.
A Record-Breaking Shutdown
The shutdown began on October 1, 2025, after Congress failed to agree on funding. If it continues, it will surpass the record for the longest government shutdown in U.S. history.
Crypto Laws in Limbo
Crypto legislation has been stalled for some time, and the shutdown is exacerbating the situation. With each passing day, the likelihood of progress diminishes. Congress had set self-imposed deadlines, such as the October 20 deadline for market structure legislation. However, these deadlines now seem more like suggestions than firm commitments.
Competing Priorities
As the year draws to a close, Congress has other pressing matters to address, notably the National Defense Authorization Act, a must-pass bill for military spending. This leaves crypto laws lower on the priority list. Nevertheless, there is a glimmer of hope. The Senate Agriculture Committee is working on a draft for market structure legislation, which could potentially reignite the legislative process.
The Shutdown's Impact
The prolonged shutdown is a significant wildcard. The less time Congress has, the less likely it is to address crypto laws. There are even whispers that Democrats might abandon their demands for lower healthcare premiums, which could influence their willingness to compromise on crypto legislation.
Upcoming Events
Next week, several key events are on the horizon:
- The Second Circuit Court of Appeals will hear Sam Bankman-Fried's appeal.
- The developers of Samourai Wallet will be sentenced for operating an unlicensed money transmitting business.
Conclusion
The future of crypto laws remains uncertain, with the government shutdown adding another layer of complexity. As the situation evolves, stakeholders in the crypto industry will be watching closely to see how these developments unfold.