The U.S. government shut down this past Wednesday, and the ripple effects are already being felt across various sectors, including the burgeoning world of cryptocurrency. As of today, October 4, 2025, Democrats and Republicans remain locked in a stalemate, showing little sign of reaching a deal to reopen the government. This impasse raises concerns about the potential impacts on crypto policymaking, which is already facing several delays.
An Uncertain Horizon for Crypto Policy
The immediate aftermath of the shutdown is relatively clear-cut: federal employees deemed non-essential have been furloughed, while others work without pay. Historically, these shutdowns haven’t been too disruptive if resolved within a short span—say two weeks. However, the longer the government remains inactive, the more complicated the situation becomes for the crypto sector.
A key area of concern is the delay in market structure legislation. Federal agencies involved in rulemaking, such as the Securities and Exchange Commission (SEC), have had their operations halted, putting a temporary stop to crypto-related legislative processes. The shutdown’s timing couldn’t be worse, as the SEC was expected to greenlight exchange-traded funds (ETFs) for assets like Solana (SOL) and Litecoin (LTC). Yet, the paperwork remains stuck in limbo, leaving issuers and investors in a state of uncertainty.
Historical Context and Present Challenges
Past shutdowns, like the one from December 2018 to January 2019, have shown that prolonged government inactivity can lead to significant delays in legislative and regulatory efforts. Back then, the political landscape was similarly divided, with Democrats controlling the House and Republicans the Senate. Today’s circumstances echo that political gridlock, once again putting crucial policy decisions on hold.
Ron Hammond, head of Policy and Advocacy at Wintermute, emphasized the frenetic pace of crypto policy developments before the shutdown. “It can’t be understated how busy the crypto policy developments have been,” he noted. With the shutdown, such momentum is now at a standstill, leaving policymakers in a state of limbo.
Legislative Delays and Partisan Tensions
As it stands, insiders familiar with Washington’s dynamics don’t anticipate significant changes to the timeline for market structure legislation if the shutdown resolves within a couple of weeks. Lawmakers had aimed to hold a markup session by October 20, 2025, where they would debate bills before potentially advancing them to the full Senate or House. However, given the current situation, this seems improbable, as the bill’s text remains under development.
Moreover, the furlough of regulatory agencies adds another layer of complexity. Lawmakers crafting the market structure bill can’t consult with these agencies, which would typically provide essential feedback and answers to legislative queries.
Despite these challenges, Hammond remains optimistic that December is still a feasible target for progressing legislation through Congress. Yet, he warns that the longer the shutdown persists, the more “partisan bitterness” could seep into the discourse, stalling the necessary bipartisan collaboration on crypto market structure.
The Road Ahead
While the shutdown drama unfolds, the immediate future sees little legislative activity around crypto. There are no hearings or events scheduled for the coming week. As the stalemate continues, stakeholders in the crypto space remain watchful, hoping for a quick resolution to avoid further delays.
In the meantime, the crypto community is left to ponder the broader implications of the shutdown. The ongoing uncertainty serves as a stark reminder of how intertwined the crypto world has become with government policy and the pressing need for clear regulatory frameworks.
As we navigate these turbulent times, the crypto sector must brace itself for potential shifts in both market dynamics and legislative landscapes. Whether this shutdown will lead to lasting changes in crypto policymaking remains to be seen, but one thing is certain: the road ahead is fraught with both challenges and opportunities.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
