Regulatory Developments: U.S. Lawmakers Discuss Crypto Bill

The U.S. government shutdown has now extended to a record 36 days, surpassing the previous record of 35 days. This prolonged shutdown has led to a significant impasse among lawmakers regarding federal budget funding, which is likely to impact the ongoing discussions surrounding a new cryptocurrency bill.

Following the recent off-year election, where Democrats saw a sweeping victory, expectations had been building that they might concede on certain demands, potentially facilitating a budget deal. However, the election results may further complicate negotiations, delaying any meaningful progress on legislative efforts related to cryptocurrency market structure.

According to sources, while there is still a possibility for a markup on market structure legislation by Thanksgiving, the likelihood of passing such legislation by the end of 2025 is diminishing. Many experts in the field have been furloughed due to the shutdown, which hampers the crafting of crucial legislative language.

Summer Mersinger, CEO of the Blockchain Association, indicated that the chances of the cryptocurrency bill being pushed to 2026 are increasing as the shutdown continues. Patrick Witt, the White House executive director of the President's Council of Advisors for Digital Assets, expressed optimism about achieving a market structure bill by the end of 2025, despite the challenges posed by the ongoing shutdown.

He remarked that the shutdown has paradoxically provided lawmakers with time to engage with his team on the bill's details. However, with the current situation, the prospect of moving forward with the cryptocurrency regulatory framework appears tenuous at best.

As the government remains shut down, the chances for timely advancement of the crypto bill and the overall regulatory environment seem increasingly bleak, potentially leaving industry stakeholders in uncertainty for the foreseeable future.