Lead
Washington’s funding impasse has stretched to 36 days, eclipsing the prior record and freezing progress on the long-awaited U.S. crypto market-structure bill. Policy sources told CoinDesk the electoral boost Democrats enjoyed in this week’s off-year races reduces the incentive to compromise quickly, prolonging agency furloughs and slowing the drafting of legislative text. (CoinDesk)
Legislative State of Play
- Observers now expect any budget deal to slip closer to Thanksgiving, with some insiders suggesting a comprehensive market-structure package may not clear Congress until 2026.
- Analyst Summer Mersinger cautioned that each additional week of shutdown makes a 2025 signing less likely, pushing the industry’s preferred timeline into the next legislative session.
- The stalemate has sidelined subject-matter experts at the SEC, CFTC and Treasury who typically craft technical language, compounding delays even if lawmakers reach a funding agreement.
Why It Matters for Crypto
- Without new federal rules, exchanges, broker-dealers and stablecoin issuers continue to face fragmented oversight from state regulators and existing securities laws.
- Institutional investors eyeing broader exposure remain cautious as compliance teams lack clarity on custody, market surveillance and spot-derivatives regimes.
- Companies such as Coinbase and Kraken will continue lobbying for statutory guardrails while simultaneously navigating enforcement actions, prolonging strategic uncertainty.
What to Watch
- White House digital-asset advisor Patrick Witt reiterated at Ripple’s Swell conference that President Trump still wants a bill on his desk by year-end, keeping pressure on congressional negotiators once the government reopens.
- Track Senate Banking Committee scheduling for potential markups; even staff-level briefings would signal progress once furloughs end.
- Monitor how state regulators respond—extended federal gridlock could spur more aggressive state-level rulemaking or enforcement to fill the void.
Disclaimer: This article provides policy analysis for informational purposes only and does not constitute legal advice. Consult counsel regarding specific compliance obligations.