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Government Shutdown Stalls Crypto Agenda as Senate Prioritizes Reopening

Regulatory pauses at the SEC have frozen crypto product reviews, raising the prospect of a backlog when work resumes.

Overview

  • The shutdown has entered its fourth week, surpassing the second-longest on record and extending uncertainty for digital-asset policy.
  • Senate attention to funding has likely closed a narrow window to align with the House’s Digital Asset Market Clarity Act, and timelines are now discussed in terms of 2026.
  • SEC work on digital-asset proposals, exchange-traded product approvals and IPOs is paused under essential-only staffing, with stablecoin policy work also on hold.
  • Crypto executives met with senators from both parties to keep market-structure talks moving, as a leaked Democratic DeFi draft drew backlash and fueled tense exchanges.
  • Prediction markets on Polymarket and Kalshi point to a mid-November reopening and suggest the shutdown could exceed the 35-day record.