🇺🇸 US Shutdown Looms, Crypto Legislation at Risk
If Republicans and Democrats fail to agree on a temporary funding bill by midnight Tuesday, the US government could shut down. This may delay consideration of the digital asset market structure bill currently before the United States Senate.
House and Senate leaders are meeting Donald Trump on Monday to negotiate terms and prevent a shutdown. While Republicans hold a majority in both chambers, additional votes are required to approve temporary funding. Democrats have requested changes to certain healthcare cuts under July’s “One Big, Beautiful Bill.”
Funding challenges may halt key legislative priorities, including digital asset legislation.
🏛 Impact of a Shutdown on Legislative Processes
If a government shutdown occurs, Congress ceases all activities, including votes on bills affecting the SEC and CFTC. The digital asset market structure bill, initially scheduled for late September consideration in the Senate Banking Committee, could face further delays.
Also Read : US Lawmakers Urge SEC for Cryptocurrency Access in Retirement Plans and 401(k)s
📜 Historical Context: Trump and Shutdowns
The US has experienced multiple shutdowns due to policy disputes. Under President Trump, a 35-day shutdown over border wall funding occurred during 2018–2019. During these periods, lawmakers prioritize government funding over other legislation, often postponing crypto-related bills.
🤝 Negotiations Underway
Last week, Trump suggested that talks with Democrats might be unproductive. Despite this, he is meeting:
- House Minority Leader Hakeem Jeffries
- Senate Minority Leader Chuck Schumer
- House Speaker Mike Johnson
- Senate Majority Leader John Thune
Senate Majority Leader Thune proposed a “simple, seven-week funding resolution” to prevent a shutdown in November. Jeffries rejected it due to insufficient healthcare provisions for Democrats.
💎 Impact on Crypto Legislation
The Responsible Financial Innovation Act (digital asset market structure bill) builds on the CLARITY Act passed by the House in July. It aims to assign regulatory roles over digital assets to the CFTC and SEC.
Senator Cynthia Lummis of Wyoming, a key Republican backer, had hoped to advance the bill through the Senate Banking Committee by late September. Due to potential delays from a government shutdown, the bill may not progress until late October—or even later.
If no agreement is reached, the US government will shut down at midnight Tuesday, halting all pending crypto legislation and regulatory actions.
