US Government Shutdown Nears End, Potentially Unfreezing Crypto Regulation

Jimmy Aki
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White House economic advisor Kevin Hassett stated on October 20 that the U.S. government shutdown is “likely to end sometime this week.”

He noted that progress is urgently needed as key agencies, including the SEC and CFTC, remain partially closed, halting crypto-related and other economic operations.

President Trump May Take Stronger Action After Senate’s 11th Failed Vote

Hassett told CNBC’s Squawk Box that without a resolution this week, President Trump may take stronger measures to pressure Democrats toward a deal.

He explained that the administration is growing impatient and may consider executive-level steps to pressure lawmakers back to the table.

The warning came during the third week of the government shutdown. Stalled resolution continues to strain federal operations and delay key economic processes.

The impasse reflects a deep divide in the Senate over spending priorities and how to allocate federal funds moving forward.

Republicans advocate for a short-term funding bill to reopen the government at existing budget levels, aiming to create space for broader negotiations.

Democrats, however, insist that any temporary deal must include increased healthcare spending, specifically an extension of the Affordable Care Act tax credits set to expire in 2025.

Currently, there are no signs of resolution.

Shortly after Hassett’s positive projection comments, the Senate failed once again to move forward.

It was the eleventh unsuccessful attempt to pass the House-approved bill to end the shutdown and fund the government through November 21.

Each vote has fallen short of the 60-vote threshold required to advance. For President Trump, patience appears to be wearing thin. Many within his circle see a stronger stance as necessary to break the deadlock.

Crypto ETFs Poised to Be the Biggest Beneficiaries

As the government shutdown inches toward a possible resolution, the crypto industry appears ready to benefit the most.

The shutdown has kept regulators like the SEC and CFTC from carrying out normal operations, putting several crypto-related filings and exchange-traded fund (ETF) requests on hold.

Among them is Canary’s proposed Litecoin ETF, which has been waiting for review since before the closure.

Analysts believe that once the government reopens, the SEC is expected to move quickly on pending ETF applications. The agency’s updated listing standards could simplify the approval process, removing some of the procedural delays that slowed past reviews.

Confidence across the sector remains strong. Ark Invest recently filed for three new Bitcoin ETFs, showing that major financial firms still have confidence in crypto’s future.

https://twitter.com/ArkkDaily/status/1978255096577241439

When the government reopens, regulators are expected to resume their reviews and update existing crypto policies.

Ending the government shutdown wouldn’t only reopen federal offices but also restart long-delayed work on crypto regulation. Many in the industry see this as a chance to regain momentum and give both investors and companies the direction they’ve been waiting for.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.