As the United States teeters on the brink of a government shutdown, the implications for the cryptocurrency sector are becoming increasingly apparent. With the deadline for a budget bill looming on September 30, 2025, the potential for a shutdown could significantly impact the momentum of crypto-related policymaking in Washington, D.C.
Political Gridlock and Crypto Legislation
The current political landscape is fraught with tension as Republicans, who control the White House, House of Representatives, and Senate, grapple with passing a budget. Despite holding a majority, they require support from Democrats to move forward, and negotiations have hit a snag. President Donald Trump recently canceled a meeting with Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jefferies, further complicating the situation.
For the crypto community, the timing couldn’t be worse. The momentum for passing market structure legislation is already slowing, and a government shutdown threatens to exacerbate delays. Multiple sources indicate that the chances of such legislation reaching the president’s desk by the end of the year are dwindling. A planned markup hearing for the Senate Banking Committee’s draft bill has already been postponed to late October, while the Senate Agriculture Committee has yet to release its draft.
Jessica Martinez, Senior Director of Government Relations at the Blockchain Association, expressed concern over the potential impact of a shutdown. “While there has been good faith negotiation on both sides, a shutdown would stall critical progress on crypto policy,” she stated. However, she remains hopeful that bipartisan efforts will eventually lead to the passage of market structure legislation.
Bipartisan Commitment Amid Uncertainty
Despite the looming shutdown, there is a silver lining for the crypto industry. Kristin Smith, President of the Solana Policy Institute, remains optimistic about the bipartisan commitment to crypto legislation. She acknowledges that a shutdown would be a setback but believes lawmakers are still dedicated to passing a market structure bill.
Senator Kirsten Gillibrand (D-N.Y.) also highlighted the importance of not rushing the legislative process. Speaking at CoinDesk’s Policy and Regulation event earlier this month, she urged against setting artificial deadlines for market structure legislation, emphasizing the need for careful bipartisan consideration. “The most important issue that Congress has to deal with right now is the fiscal cliff on September 30,” she noted. “It’s crucial for this industry that we get this right and do it on a bipartisan basis.”
The Role of Regulators
While a government shutdown would undoubtedly slow down policymaking, the crypto industry might find a beacon of hope in the ongoing efforts of regulators. Agencies such as the SEC, CFTC, and Treasury Department entities will have to halt non-critical activities, but many rulemaking efforts are already underway. Some have even reached the public comment phase, offering a glimpse of continued progress.
Didier Lavallee, CEO of Canadian firm Tetra Digital, believes that while a shutdown may temporarily affect SEC Chair Paul Atkins’ agenda, the bipartisan support for crypto policymaking remains strong. “Short-term delays in policy timelines are likely, but it’s unlikely to fundamentally derail progress in the long run,” he asserted.
Upcoming Events and Considerations
Amidst the uncertainty, key events are still on the horizon. On Monday, September 29, 2025, the SEC and CFTC are scheduled to hold a joint roundtable to discuss unifying their regulatory efforts. The following day, post-trial motions in the Department of Justice’s case against Roman Storm are due. Storm was recently convicted of conspiring to operate an unlicensed money transmitter, though he was acquitted on two other charges.
As the deadline approaches, the crypto community remains on edge, closely monitoring developments in Washington. While a government shutdown poses significant challenges, the resilience of the industry and the ongoing commitment from lawmakers and regulators offer hope for the future.
For those eager to stay informed, CoinDesk’s State of Crypto newsletter continues to provide insights into the intersection of cryptocurrency and government, with the promise of more updates in the weeks to come.
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.
