The U.S. federal government shut down on 1 October 2025 after Congress failed to reach a funding agreement. The shutdown is already the second-longest in American history, and if it continues through next week, it will surpass the previous record of 35 days.
The shutdown has directly stalled cryptocurrency regulation: Congress has missed several self-imposed deadlines, including a tentative 20 October markup hearing on market structure legislation. Ron Hammond, Wintermute's Head of Policy and Advocacy, noted that competing priorities will intensify as the year-end approaches, particularly the must-pass National Defense Authorization Act. The next key development to watch is the Senate Agriculture Committee's draft market structure bill — if feedback is positive, a markup hearing around Thanksgiving and a subsequent vote remain possible. The political landscape is further complicated by the Trump administration's refusal to distribute Supplemental Nutrition Assistance Program benefits during the shutdown, a decision overruled by two federal judges on Friday. If Democrats are forced to concede on their shutdown demands, they may be less willing to compromise on crypto market structure legislation.
Each additional day of the shutdown reduces the time available for Congress to advance crypto regulation, as bills that stalled over the summer continue to compete with other urgent legislative priorities for limited floor time.
Sources:
