The three-week government shutdown in the United States is likely to end this week, according to White House economic adviser Kevin Hassett. And that begs the question: does this give new impetus to the stalled regulation for crypto?
Senate divided over reopening government
Hassett said in an interview with CNBC that he expects “the Schumer shutdown will probably end sometime this week.” He was referring to Chuck Schumer, leader of the Democratic minority in the Senate, who is partly responsible for halting the budget procedure.
According to Hassett, the idea has arisen within the Senate that it would be politically unfavorable for the Democrats to reopen the government before the national “No Kings” protests. At the same time, he sees opportunities that both parties can reach an agreement this week to end the standstill.
He added that if the standstill continues, the White House should work with budget director Russ Vought to look at stronger measures to bring Democrats to the negotiating table.
Third longest shutdown in US history
The current shutdown, which started on October 1, is now the third longest in American history. Many pending applications for investment products, such as ETFs for crypto coins such as Litecoin (LTC), XRP and Solana (SOL), have been suspended until the budget dispute is resolved.
For the crypto sector, the end of the standstill is extra important, because the approval of new regulations can start again more quickly once the budget procedure runs normally.
Moreover, it would remove a lot of uncertainty from the market (which could have a positive effect on prices). A shutdown is almost always accompanied by economic damage and with the lack of official economic figures, investors do not know what the situation is on the labor market, for example.
At the same time, crypto prediction market Polymarket shows that there remains a good chance that the shutdown will last more than 30 days, possibly until the end of October or even November.
Reopening can breathe new life into regulations
The question remains whether there will actually be a breakthrough this week, or whether both parties will remain stuck and the standstill will last longer. It is also still unclear what impact this will have on the regulation of the crypto markets and the total market value of the sector.
If the freeze is indeed ended soon, it could be an important step in resuming crypto regulatory talks.
Source: https://newsbit.nl/amerikaanse-shutdown-eindigt-waarschijnlijk-deze-week-wat-betekent-dit-voor-crypto/
