Imminent US government shutdown looms large on the crypto world, as it threatens to put on hold several crypto-focused bills.We were on the verge of witnessing a resurgence in crypto-focused legislation in the United States with multiple bills awaiting a House floor vote in the present congressional session. The Financial Innovation and Technology for the 21st Century Act (FIT), the Blockchain Regulatory Certainty Act, the Clarity for Payment Stablecoins Act, and the Keep Your Coins Act all had the potential to bring much-needed regulatory clarity to the volatile crypto market.
However, with the possibility of a government shutdown, sparked by political deadlock over spending plans, a cloud of uncertainty now hangs over the fate of these bills. The government to cease operating and in such a scenario, lawmakers would not be able to move forward on any legislation until the matter of funding the government for the coming fiscal year is resolved.
While it is not the first time we would witness a government shutdown, the motives behind them seem to have evolved from public spending concerns to political manoeuvering. With a divided House and Senate veering off in different directions, the prospect of a shutdown seems more likely than ever.
The worrying fact for crypto enthusiasts is the longer the shutdown persists, the more these bills are going to get shunted off, delaying the adoption of crucial reforms in the crypto market. Some bills have bipartisan support and would likely pass in floor votes, however, political pitfalls such as differences in the approach to stablecoin legislation by the two major parties could potentially sabotage their progress.
With the imminent shutdown, all non-essential federal actions would come to a halt, including many operations of regulatory bodies like the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission that oversee digital assets. This scenario could lead to regulatory stagnation in crypto markets.
It’s a race against time as lawmakers have until Sept 30 to reconcile their differences regarding the spending bills. Adversely, a failure to do so would translate into a major setback for crypto regulatory progress. It’s a classic case of political wrangling interfering with the pursuit of technological progress, and unfortunately, it’s the crypto market and its stakeholders who stand to lose.
Source: Cointelegraph
