U.S. Government Shutdown Stretches to Record 36 Days, Continues Risk of Derailing Crypto Bill

The U.S. government shutdown has officially become the longest on record, surpassing the previous 35-day mark as of Wednesday. Lawmakers remain at an impasse over federal budget funding, a situation complicated by Tuesday night's sweeping win for Democrats in an off-year election. Expectations had been growing that Democrats might yield and vote to fund the government soon — possibly this week or early next week — without gaining concessions on healthcare premiums, which recently increased. However, Tuesday's election results may have strengthened Democratic resolve, delaying any potential deal.

The ongoing standoff could also further delay progress on crypto market structure legislation. Analysts have observed that the significant support Democrats received in the elections might extend the timeline for dealmaking. One policy expert suggested that the results could push back discussions significantly, though they still see a markup on market structure being possible by Thanksgiving. Another expert indicated that while passing crypto market legislation is feasible, it is unlikely to occur by 2025, with a possible passage by the end of 2026 instead.

As the shutdown drags on, the chances of crypto market structure legislation advancing through Congress continue to diminish, as previously reported by CoinDesk. Summer Mersinger, CEO of the Blockchain Association, stated that the extended shutdown makes it increasingly likely the bill could be delayed until 2026. Many key government experts in this area have been furloughed, leaving fewer resources available to draft the fundamental legislative language necessary for moving forward.

Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, shared insights at Ripple's Swell Conference. He reiterated that President Donald Trump aims to see a final market structure bill on his desk by the end of 2025. Witt emphasized that pressure is being applied through regular meetings with Senators from both political parties. He noted that recent progress has been encouraging, with the trend line moving in the right direction.

Witt also pointed out that the lengthened government shutdown has, in some ways, allowed for more focused conversations with lawmakers. He mentioned that his team has taken the opportunity to engage deeply with offices, staffs, and members of Congress about the content of the bill. "We've had an opportunity to really engage with offices [and] staffs and members on the substance of this bill in a way that we might not have otherwise been able to,” Witt said, referencing the low competition for lawmakers' attention during the shutdown.