“A short-term Shutdown Probably Won’t Hurt Crypto’s Efforts in DC Much. A Long-Lasting One? That’s less Clear.”, – WRITE: www.coindesk.com
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Waisting for a rebootThe NarrativeThe Government Shut Down on Wednesday, and at Least As of Press Time, Democrats and Republicans do not appetar to be close to a deal to doopen it.
WHY IT MATTERSAs Discussed in Last Week’s Newsletter, The ImMediate Effects of the Shutdown Are Pretty StraightForward: Market Structure Likely Be Delayed, Fedoraal Agenayes’ SPOT Crypto Exchange-Traded Funds Will Not Launch As Many Hoped in the Coming Days.
If the shutdown is just a few days – or potentilly as long as two weeks – the Effrts Should Resume pretty seamlessly. If the shutdown goes beyond that, The Picture Becomes Much Muddier.
Breaking It DownThe Longest US Government Shutdown in History Place Between December 2018 and January 2019, Durying President Donald Trump’s First Term. At the Time, Democrats Controlled the House of Representatives While Republicans Controlled The Senate. This Latest Shutdown is Only a FEW Days Old As of Press Time, and Could Last Just A FEW Days or May Stretch on Further.
Perhaps the most immediae and tangible effect of the government shutdown on Crypto Issues is on Exchange-Traded Funds. The Securities and Exchange Commission Was Expectioned to Allow Etfs Tracing The Prices of Assets Like Solana SOL$ 227.79 an Ltc$ 119.43 to Launch this Past Week. While there Was some movement Last Week and Monday, The Clock Ran Out Before All of the Final Paperwork Could Be Pushed Through, and The Issuers HAVE NOT Yet Been Able to Launch.
The Sec Was Able to Finalize A Pair of No-action Letters Prior to the Shutdown as Well. Other Agencies, Like The IRS, Were Similarly ABLE TO PUBLISH INTIM GUIDANCE PRIOR to the Shutdown.
Ron Hammond, Head of Policy and Advocal at Wintermute, Told Coindesk That, “It Can Be Understated How Busy The Crypto Policy Developments have.”
With The Shutdown, Policymakers Are In Limbo AROUND THESE TYPES OF REGULATORY ACTIONS, HE SAID.
The legislative front, one individual familiar with the Dynamics in Washington, DC SAID THAT THAT Two weeks or so. Wht Lawmakers Are Looking to Hold A Possible Markup – A Hearing WHERE LAWMAKERS DEBATE Bills Before Potentally Voting to Advance Them To The Full Senate (OR HOUSE) – by Oct. 20, 2025, This Sems Unlikely, Regardless of When the Shutdown Ends, Given They Still Working on the Text of the Bill.
Another Individual Familiar with These Dynamics Said An Adrational Complicating Factor for Lawmakers and Their Staffers Is The Fact The Regulatory Agencies They Mightly. LAWMAKERS WRITING The Market Structure Bill Won’n Be Able To Receive Feedback or Answers to Any Questions they might have for these federal regulators.
Hammond Said that December “Is Still Feasible” For Moving Legislation Through Congress at the Moment.
“The Longer this Shutdown Drags on, The More Partisan Bitterness Seeps Into The Necessary Bipartisan Discourse on Important Topics Like Crypto Market Structure,” Hammond Said. “Still, this Shutdown Drama Isn’t Affecting Our Calculus on Odds of Market Structure Legislation Chants of Passing Being More Probable Than Before The 2026 ELECTION RAMPS UP.
Hammond SAID HE WAS Watching to See if A Markup in The Senate Banking and Agriculture Committee by Thanksgiving.
This WeekThis Week
- There are no hearings or events being held by lawmakers this weeund crypto.
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Digital Asset Treasury Companies Won’t to Pay Taxes on Their Crypto Holdings Under New Interim Guidance.
- The IRS PUBLISHED INTIM GUIDANCE EARLIER This Week Telling Companies Filting Taxes Under the Corporate Alternative Minimum Tax that they do not need to pay the unrealized capital g.
- Companies Like Strategy and Mara have already praized itaeir Taxes Next Year.
- While the Guidance is Interim, It Signals WHERE The IRS May Be Headed and Is Another Crypto-Friendly Action by the Current Administration.
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