Congressional Gridlock Impacts Crypto Bills
The ongoing U.S. government shutdown, now approaching record length, has effectively halted progress on cryptocurrency legislation. With Congress unable to pass funding bills, crypto market structure proposals and other digital asset regulations have been pushed to the back burner. The shutdown began on October 1, 2025, and if it continues through Wednesday, it will become the longest in American history at 36 days.
Lawmakers had set several self-imposed deadlines for crypto legislation, including an October 20 target for a markup hearing on market structure bills. Those deadlines have come and gone without action. The longer the shutdown persists, the less likely it becomes that any meaningful crypto legislation will pass this year.
Competing Priorities and Limited Time
Ron Hammond, Wintermute’s Head of Policy and Advocacy, noted that as the year progresses, Congress will face competing priorities that take precedence over cryptocurrency regulation. The annual National Defense Authorization Act, a must-pass military spending bill, will demand significant attention when lawmakers eventually return to work.
Despite the current standstill, there remains some optimism in Washington that crypto legislation could see movement once the shutdown ends. The Senate Agriculture Committee’s draft market structure bill is particularly watched as a potential indicator of where broader legislative efforts might go. If that draft receives positive feedback, lawmakers could potentially schedule a markup hearing around Thanksgiving.
Political Complications and Compromise
The shutdown itself creates additional complications for crypto legislation. Sources familiar with D.C. politics suggest that if Democrats are forced to compromise on their shutdown-related demands, they may become less willing to negotiate on market structure legislation. There are rumors that Democrats might abandon their push for lower healthcare premiums within the next week due to the Trump Administration’s refusal to distribute SNAP benefits during the shutdown.
Two federal judges recently ordered the administration to resume SNAP benefits regardless of the shutdown, which could affect the political dynamics. The timing is particularly challenging as next week also brings elections in Virginia and New Jersey, where voters will decide on various ballot initiatives and elect representatives, mayors, and governors.
Looking Ahead
While the immediate outlook for crypto legislation appears dim, the situation could change rapidly once the government reopens. The compressed legislative calendar means that any movement would need to happen quickly, but the fundamental work on these bills has already been done during the summer months. The real question becomes whether lawmakers will prioritize crypto regulation among the many other urgent matters they’ll need to address after the shutdown ends.
