Crypto Bill Held Hostage by 38-Day Government Shutdown as Senate Prepares Critical Vote
The United States authorities shutdown has entered its thirty eighth day, marking the longest in historical past, as the Senate prepares for a vital vote on a brand new funding invoice that might decide when Washington reopens.
The political impasse has halted progress on key legislative priorities, together with the long-anticipated crypto market construction invoice recognized as the CLARITY Act.
Prolonged Shutdown Risks 2% GDP Hit as Senate Prepares Crucial Vote
The Senate is expected to vote this week on a Republican-backed proposal that may finish the shutdown and fund a number of federal companies by means of the remainder of the fiscal yr.
The measure requires 60 votes to advance, and whereas Republican leaders have expressed cautious optimism, uncertainty stays over whether or not sufficient Democrats will assist it.
“My hopes and expectations are all the time that we’re going to have sufficient Democrats to really proceed, however I don’t know, we’ll see,” Senate Majority Leader John Thune advised reporters.
The standoff, which began on October 1 after lawmakers didn’t agree on a price range, stems from disagreements over healthcare subsidies tied to the Affordable Care Act.
Democrats have demanded an extension of expiring tax credit that assist about 24 million Americans afford insurance coverage, whereas Republicans argue that these points needs to be negotiated individually as soon as the federal government reopens.
With roughly 1.4 million federal staff affected, together with 700,000 furloughed since early October, the shutdown’s financial and social toll is deepening. Federal staff have now missed a number of paychecks, and companies from the Federal Aviation Administration (FAA) to the USDA are slicing providers.
A Rhode Island courtroom on Thursday ordered the Trump administration to revive full funding for the SNAP program after it had been decreased to partial funds.
The administration has appealed the choice, arguing that funding choices ought to await congressional motion. Nearly 42 million Americans rely on this system, which prices greater than $8 billion per 30 days.
Economists warn the extended shutdown may inflict lasting harm on the U.S. financial system.
The Congressional Budget Office estimates the standoff may shave as much as two share factors off fourth-quarter GDP development, draining between $10 billion and $30 billion weekly.
Small companies that depend on federal contracts and loans are working brief on capital, and client spending is declining as hundreds of thousands of staff stay unpaid.
How Long Can Crypto Wait While Washington Sleeps?
The shutdown has additionally paralyzed Washington’s regulatory equipment. Agencies overseeing monetary markets, together with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are working with skeleton crews.
Reviews of pending purposes, together with a number of proposals for crypto exchange-traded funds (ETFs), have been suspended.
Interesting: Because most SEC employees are presently furloughed because of the authorities shutdown, they’ll NOT be accessible to evaluation or reply to Fails-to-Deliver (FTD) associated queries or compliance ISSUES except they’re designated as EMERGENCY capabilities.
pic.twitter.com/5cDqudANAs
— Reese Politics (@ReesePolitics) November 3, 2025
The deadlock has successfully frozen legislative momentum on digital belongings. The bipartisan CLARITY Act, designed to outline how cryptocurrencies and stablecoins are regulated throughout federal companies, had seen renewed exercise in late October.
Senators John Boozman and Cory Booker said their committees were working “daily” to finalize their part of the invoice and anticipated a vote earlier than Thanksgiving. However, with the federal government shutdown getting into its sixth week, that timeline is now in jeopardy.
Coinbase CEO Brian Armstrong advised CNBC that roughly 90% of the invoice’s points had already been resolved and that Thanksgiving had been floated as a possible target for completion.
The market fallout has prolonged past Capitol Hill. The liquidity squeeze triggered by the shutdown, exacerbated by the U.S. Treasury General Account hoarding funds whereas companies stay closed, has weighed closely on threat belongings.
Bitcoin has retreated from recent highs, testing long-term assist ranges as buyers navigate decreased market liquidity and uncertainty round fiscal coverage.
Meanwhile, prediction markets point out rising skepticism a couple of fast decision to the shutdown.
Data from the decentralized platform Polymarket exhibits merchants assigning a 59% likelihood that the shutdown will prolong past November 16, with solely a 13% probability of reopening earlier than mid-month.
The put up Crypto Bill Held Hostage by 38-Day Government Shutdown as Senate Prepares Critical Vote appeared first on Cryptonews.
