"Alamak, won't the crypto market be wiped out like that because of the government shutdown?"
The 'government shutdown' or closure of the United States (US) government that is being considered to take effect is not good news for the cryptocurrency market. Previously, graduation including greater regulatory approval has been suspended if this situation occurs.
However, the government shutdown this time is more complicated than before because there is a big possibility for the federal government to be closed.
Based on observations, the House of Representatives was found to be uninterested in keeping the federal government running in the short term, where disgruntled House of Commons Speaker Kevin McCarthy could reduce the chances of ensuring federal workers are paid.
During the last shutdown in 2018 and 2019, Bitcoin (BTC) ETF applications by Bakkt and ErisX which are now part of Cboe were suspended, resulting in one of its executives blaming the shutdown as the reason the product was not approved.
Currently, the Securities and Exchange Commission (SEC) is also found to be slowing down BTC ETF applications and crypto exchange Coinbase is looking at a deadline of October 11, 2023 for a response from the SEC to the Mandamus petition.
Plus the SEC may have a limited litigation team for a certain period of time followed by a major concern regarding civil and legal court cases if a government shutdown occurs.
However, Coindesk writer Jesse Hamilton is of the view that the shutdown will by no means completely wipe out crypto projects.
However, crypto legislation may be slowed down or stopped completely even though the bill has limited opportunities, Jesse reiterated.
