The prolonged U.S. government shutdown has sidelined key crypto regulatory efforts, leaving the long-awaited digital asset market structure bill stalled in Congress.
Shutdown Overshadows Crypto Legislation
The U.S. government shutdown has entered its 38th day, forcing lawmakers to prioritize reopening federal operations over advancing pending legislation — including the long-anticipated crypto market structure bill. The Senate is scheduled to vote Friday on a House continuing resolution that would temporarily restore government funding, but whether it can secure the required 60 votes remains uncertain.
The shutdown, now one of the longest in U.S. history, has paralyzed numerous agencies and delayed key policy initiatives. While members of Congress continue to receive pay, many federal workers have been furloughed or forced to work without pay, underscoring the urgency for a resolution.
Crypto Bill Stalled Amid Political Gridlock
The digital asset market structure bill — referred to as the CLARITY Act in the House and the Responsible Financial Innovation Act in the Senate — was expected to mark a major milestone for crypto regulation in the U.S. The legislation aims to establish a unified regulatory framework for cryptocurrencies, clarifying the roles of the SEC and CFTC in overseeing digital assets.
However, with political focus shifted to ending the shutdown, progress on crypto policy has stalled. Lawmakers from both parties reportedly continue to discuss the bill behind closed doors, but no immediate action is expected until federal operations resume.
“Any legislation, including that related to crypto, seems to have taken a backseat to addressing the shutdown,” one congressional aide said.
Republicans’ Ambitious Timeline Fades
In August, Senator Cynthia Lummis (R-WY) — one of crypto’s strongest advocates in Congress — said Republicans hoped to advance the bill through the Senate Banking Committee by September and the Agriculture Committee by October, aiming for final approval by 2026.
That timeline now appears increasingly unrealistic, given the political deadlock and upcoming holiday recess. While bipartisan interest in digital asset regulation remains strong, lawmakers face mounting challenges to maintain momentum as the shutdown drags on.
The extended government shutdown highlights how macroeconomic and political crises can delay progress on even high-priority policy issues like crypto regulation. With no clear path forward, the crypto industry remains in limbo, awaiting clarity on how digital assets will be governed in the U.S.
As one policy analyst noted, “Until the government reopens, the future of U.S. crypto legislation is effectively frozen — and the longer the stalemate continues, the further that future drifts.”
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