US Government Faces Possible Shutdown, Potentially Impacting Crypto Bills
The United States government is at risk of a shutdown in the coming week as House Speaker Kevin McCarthy deals with internal political pressures surrounding spending plans. This decision could have adverse effects on the progress of crypto bills awaiting a vote, potentially impacting the future of cryptocurrency regulation.
In July, the House Financial Services Committee voted in favor of several crypto-focused bills, including the Financial Innovation and Technology for the 21st Century Act (FIT), the Blockchain Regulatory Certainty Act, the Clarity for Payment Stablecoins Act, and the Keep Your Coins Act. These bills have garnered support and could be brought to a House floor vote during this session of Congress.
However, if a government shutdown occurs, lawmakers will be unable to move forward with any legislation until funding for the next fiscal year is resolved. While government shutdowns have occurred before in US history, they are now driven by political maneuvering rather than concerns over funding.
Crypto Experts Express Concern Over Government Shutdown
Ron Hammond, director of government relations at the Blockchain Association, has expressed concern about the potential impact of a shutdown on the digital asset industry. He highlighted divisions within the House Republican party and the Senate’s independent direction as factors increasing the likelihood of a shutdown.
“For crypto, the longer the shutdown goes on, the more various bills including FIT/market structure and stables get pushed.”
Hammond believes that several bipartisan bills awaiting a vote are likely to pass but mentions that there are political obstacles that could jeopardize their approval.
Lawmakers have until September 30 to reach an agreement on spending bills before the start of the next fiscal year. If a shutdown occurs, it would halt operations of non-essential federal agencies, including regulatory bodies like the US Securities and Exchange Commission and the Commodity Futures Trading Commission that oversee digital assets.
House Speaker McCarthy’s Plans and Push for Crypto Regulations
As of September 25, Speaker McCarthy was reportedly planning to introduce spending bills that include provisions on abortion access restrictions, funding for a US-Mexico border wall, and other initiatives favored by far-right members of the Republican Party. However, these initiatives are unlikely to gain approval from Democrats.
The House of Representatives is scheduled to convene on September 26 to address the issue, while the Senate will consider its own stopgap funding measure.
The possibility of a government shutdown arises as some lawmakers advocate for crypto regulations. Senator Kirsten Gillibrand aims to convince her party members to embrace more digital asset regulations in order to move towards a bipartisan approach.
“I don’t think it has to be a partisan issue. I’m optimistic that through conversation, and through socialization of the ideas that are in our bill, it will become more bipartisan.”
Hot Take: Potential Impact on Crypto Bills and Regulation
The looming possibility of a US government shutdown raises concerns about the progress of crypto bills awaiting a vote and the future of cryptocurrency regulation. If a shutdown occurs, lawmakers will be unable to move forward with any legislation until funding is resolved. This could delay important bills related to crypto regulation and disrupt the operations of regulatory bodies overseeing digital assets.
Crypto experts worry that the longer the shutdown persists, the more these bills may be pushed aside. While some bills have bipartisan support and are likely to pass, there are political obstacles that could hinder their approval. The outcome will depend on lawmakers’ ability to reach an agreement on spending bills before September 30.
As the government shutdown threat looms, some lawmakers are also advocating for more digital asset regulations. However, achieving a bipartisan approach remains a challenge, and the partisan nature of the issue may complicate progress in this area.
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