With the U.S. government facing a potential shutdown, there are concerns about how it could impact the already unstable cryptocurrency industry. Previous shutdowns have caused delays in decision-making for crypto-related entities, such as the shelving of a bitcoin exchange-traded fund. Currently, attention is focused on the SEC, which may be postponing Bitcoin ETF applications and awaiting a response to its Mandamus petition from Coinbase.
If Congress does not intervene in time, the government could halt its operations this weekend. This happens when Congress fails to approve spending bills by October 1, resulting in a funding lapse and suspending non-crucial government functions. The duration of the shutdown is uncertain due to disagreements on Capitol Hill.
The potential shutdown comes at a critical time for the crypto industry. While there may be disruptions and delays, experts believe that essential matters will not go completely unnoticed. However, litigation may be paused, new product approvals put on hold, and regulatory decisions delayed. This could negatively impact enterprises awaiting SEC decisions and contribute to market volatility.
The crypto market is already uncertain, with declining figures for the top 10 cryptocurrencies. If a shutdown occurs, this trend could worsen. Regulatory decisions play a crucial role in market stability, and any delays could deter potential investors and lead to sell-offs. Uncertainty is a major driver of volatility in the market.
Hot Take: Potential Government Shutdown Raises Concerns for Crypto Industry
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