Government Shutdown Lingers: Crypto Efforts Delayed
The partial government shutdown that began on Wednesday has left the cryptocurrency industry waiting with bated breath as key policy initiatives are put on hold. The immediate effects of the shutdown are clear, but experts warn that a prolonged delay could have far-reaching consequences for crypto's efforts in Washington.
Delayed Legislation and Rulemaking
Market structure legislation, which aims to regulate the trading of cryptocurrencies, is likely to be delayed due to the shutdown. Federal agencies' rulemaking processes will also slow down, putting new spot crypto exchange-traded funds (ETFs) on hold. "The longer the shutdown lasts, the more delayed these efforts will be," said a senior government official, who spoke on condition of anonymity.
Background and Context
The U.S. government has been working to pass legislation that would provide clarity on cryptocurrency regulations. The proposed bill aims to establish clear guidelines for market structure, including requirements for trading platforms and custody services. However, the shutdown has put these efforts on hold, leaving the industry in limbo.
Additional Perspectives
Industry experts are divided on the impact of the shutdown. Some argue that a short-term delay will not significantly affect crypto's efforts in D.C. "A few weeks' delay is nothing compared to the progress we've made so far," said Chris Brummer, a Georgetown University law professor and former Commodity Futures Trading Commission (CFTC) member.
Others warn that a prolonged shutdown could have serious consequences for the industry. "The longer this shutdown lasts, the more uncertainty there will be in the market," said Andrew Hinkes, a cryptocurrency lawyer at Hinkes & Ruiz LLC. "This could lead to a loss of investor confidence and potentially even a decline in prices."
Current Status and Next Developments
As the shutdown enters its second week, lawmakers are working on a plan to reopen the government. If a deal is reached soon, crypto efforts may not be significantly impacted. However, if the shutdown persists, industry experts warn that delays could become more pronounced.
In the meantime, the cryptocurrency community remains vigilant, watching for any developments in Washington. As one industry insider noted, "We're keeping our fingers crossed that this will all get resolved soon and we can get back to work on these important policy initiatives."
Sources
Senior government official (anonymous)
Chris Brummer, Georgetown University law professor
Andrew Hinkes, cryptocurrency lawyer at Hinkes & Ruiz LLC
Note: This article is based on a CoinDesk newsletter and has been adapted for a news article format.
*Reporting by Coindesk.*
