A bill passed by the Senate to fund the government was rejected by the US House of Representatives, and Speaker Kevin McCarthy’s suggestions haven’t yet been adopted by the hard-right members of the House. This means that a partial closure of the American government, beginning on October 1, is likely.
A U.S. government shutdown would effectively halt all activities carried out by federal departments and agencies that are deemed “non-essential.” Even if the partial government shutdown only lasted a few hours, when business resumes, lawmakers may prioritize other measures over cryptocurrency legislation. Financial authorities, such as the Securities and Exchange Commission and Commodity Futures Trading Commission, would be operating on a skeleton staff and bills for the good or bad of digital assets would be put on hold during the closure.
The Financial Innovation and Technology for the 21st Century Act (FIT), the Blockchain Regulatory Certainty Act, the Clarity for Payment Stablecoins Act, and the Keep Your Coins Act were all approved by the House Financial Services Committee in July. These bills with a focus on cryptocurrencies cannot be implemented in the event of a shutdown. A shutdown, according to Treasury Secretary Janet Yellen, is “dangerous and unnecessary” and could “cause economic headwinds” in the future. She also expressed her objection to “House Republicans’ failure to act” in a speech on September 29.