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Numerous federal employees in the US have been placed on furlough, and others persist in their duties without compensation, since officials did not succeed in passing a temporary measure to finance the government last week, with the shutdown anticipated to prolong.
As of Monday morning, there had been no reported agreement between Republican and Democratic representatives of the US Congress to halt the shutdown and restore operations to a standard state, which includes functions at financial regulatory bodies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The Senate is slated to conduct a vote on a continuing resolution to finance the government at 5:30 pm ET, but at the time of this publication, it was uncertain whether the proposal would garner sufficient backing to pass.
The essence of the Democrats’ stance in the budget impasse revolves around healthcare, with lawmakers insisting that any appropriations bill incorporate a reversal of reductions mandated by a July budgetary decision.
Concerning the repercussions on the digital asset sector, the SEC indicated that it would function “under modified circumstances” with an “exceptionally minimal number of personnel” until a funding bill is approved, curtailing its capacity to assess cryptocurrency exchange-traded fund applications. The CFTC, which currently has only one commissioner acting as chair, is likewise operating with limitations and a reduced workforce.
“The US government shutdown […] can negatively impact the crypto sector by hindering the SEC and CFTC, which are crucial for global digital asset markets,” Przemysław Kral, CEO of the crypto exchange Zondacrypto, stated in a declaration shared with Cointelegraph.
“While the immediate effects may appear contained, their diminished operational capacity endangers innovation and undermines investor confidence, especially in a region already striving to keep pace with crypto regulations,” Kral remarked.
Related: Bitcoin surge to $125K spurred by US government shutdown, macro factors: Analysts
Until the government resumes standard operations, it is improbable that the Senate will be able to evaluate a bill to create a digital asset market framework, nor would US President Donald Trump appoint replacements for CFTC commissioners.
The White House rescinded the nomination of Brian Quintenz as CFTC chair last week amid reported opposition from Gemini co-founders Cameron and Tyler Winklevoss, both of whom are Trump supporters and contributors.
Crypto users are wagering on an extended shutdown
A variety of wagers on platforms like Kalshi and Polymarket demonstrate that numerous users anticipate a prolonged — but not historically lengthy — shutdown. Trump holds the record for a 35-day government shutdown during his initial term, over his effort to construct a US-Mexico border wall.
On Kalshi, a wager on the duration of the shutdown estimated a 69% chance of it extending beyond 15 days, with 41% for over 25 days. Polymarket provided users with a 24% probability at the time of publishing that the ongoing shutdown would be the longest in US history, but a 72% chance that it would conclude post-Oct. 15.
The shutdown has now entered its sixth day following the cessation of funding at midnight on Sept. 30.
Magazine: Bitcoin could move ‘very quick’ to $150K, altseason skepticism: Hodler’s Digest, Sept. 28 – Oct. 4
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