Government Shutdown Impacts Crypto Legislation Timeline
The ongoing U.S. government shutdown, now approaching record length, has effectively put cryptocurrency legislation on hold. With Congress unable to pass funding bills, the legislative calendar has been disrupted, and crypto bills that were gaining momentum earlier this year now face significant delays.
Lawmakers had set several self-imposed deadlines for crypto legislation, including an October 20 target for market structure bill markups. Those deadlines have come and gone without action. The shutdown means congressional staff aren’t working, hearings aren’t happening, and the normal legislative process has ground to a halt.
Timeline Pressure Mounts
As the shutdown continues, the window for passing crypto legislation this year narrows considerably. Wintermute’s Head of Policy Ron Hammond noted that Congress will soon need to shift focus to other priorities, particularly the National Defense Authorization Act – a must-pass military spending bill that typically consumes significant legislative attention.
There’s still some optimism in Washington that stalled crypto bills might see movement, but the timing is becoming increasingly challenging. The Senate Agriculture Committee’s draft market structure bill is being watched closely as a potential indicator of where broader legislation might head.
Political Complications
The shutdown itself creates additional political complications. Sources suggest Democrats may soon compromise on their shutdown demands due to pressure around nutrition assistance programs. However, if they’re forced to make concessions on the shutdown, they might be less willing to compromise on crypto market structure legislation.
Meanwhile, next week’s state elections in Virginia and New Jersey could further shift the political landscape. Newly elected officials may bring different priorities to state-level crypto regulation discussions.
Looking Ahead
If the shutdown ends soon and the Senate Agriculture Committee’s draft receives positive feedback, lawmakers could potentially schedule markup hearings around Thanksgiving. But that’s becoming a big “if” as the shutdown drags on.
The reality is that every day the government remains closed pushes crypto legislation further down the priority list. Congress will need to address urgent matters first when they return to work, and crypto bills may get pushed into next year.
It’s frustrating for industry participants who saw real progress earlier this year. The momentum that built around various crypto bills during the summer has largely dissipated. When Congress does eventually return to normal operations, they’ll need to rebuild that momentum from scratch.
For now, the crypto legislative agenda remains in limbo, waiting for Washington to resolve its basic funding disputes before tackling more complex financial regulation matters.
