Despite the Government Shutdown in the US, Two Internal Sources Provided Positive News for Cryptocurrencies

As the partial federal government shutdown in the United States enters its ninth day as of October 9th, the future of cryptocurrency policies remains uncertain.

However, according to sources in Washington, despite the budget not being approved, momentum for crypto regulation hasn't completely faded. While the House of Representatives is in recess due to the shutdown, the Senate is keeping crypto market regulations on the agenda alongside budget discussions.

The Senate Banking Committee is determined to advance cryptocurrency market regulation even during the government shutdown, according to two sources familiar with the matter. Committee leadership is reportedly aiming for a vote on the Responsible Financial Innovation Act by the end of the month, even if the budget doesn't pass.

While the draft was reportedly “nearing completion” before the shutdown, the process could be slowed by staff reductions at federal agencies. The temporary furloughing of many agency staff working with congressional committees on areas like cryptocurrency market structure reduces the likelihood of the draft being published in the near term.

Meanwhile, the SEC's curtailment of operations has also halted the approval process for new spot crypto ETFs. Under the SEC's suspended operating plan, the agency will not review new registration applications or issue approval notices. However, thanks to the establishment of new universal listing standards and the intensive preparations made by issuers before the shutdown, industry representatives believe that approvals will be granted quickly once federal agencies are back in full operation.

*This is not investment advice.