US Shutdown Bill Advances, Potentially Speeding Bitcoin Market Structure Legislation

• US Senate passes funding bill 60-40, extending operations through January 31, 2026.

• House vote expected mid-week, with government reopening likely by Friday.

• Shutdown delayed crypto bill progress; bipartisan talks on digital asset regulations continue amid reduced federal staffing.

US government shutdown ends: Impact on crypto regulation and SEC operations explained. Discover how renewed funding could boost digital asset market structure bill. Stay informed on key developments. (148 characters)

What Does the End of the US Government Shutdown Mean for Crypto Regulation?

The end of the US government shutdown marks a significant relief for the cryptocurrency sector, as federal agencies including the Securities and Exchange Commission (SEC) prepare to restore full operations after more than 40 days of reduced activities. This development follows the Senate’s passage of a continuing appropriations bill, which provides funding through January 31, 2026, pending House approval and presidential signature. With staff returning, regulatory processes stalled during the shutdown, such as those related to digital asset oversight, could regain momentum, benefiting the evolving crypto landscape.

How Has the Shutdown Affected Crypto Market Structure Negotiations?

The prolonged US government shutdown has notably slowed bipartisan efforts on crypto market structure legislation, with federal agencies operating at minimal capacity due to furloughs and funding constraints. According to reports from the Senate Agriculture Committee, a discussion draft of a comprehensive bill was released after weeks of negotiations between Democratic and Republican lawmakers, coming roughly four months after the House advanced its version. Republican leaders had anticipated final passage by the end of October, but the shutdown disrupted timelines, pushing deliberations into late 2025. North Carolina Senator Thom Tillis emphasized that delaying the bill beyond January or February 2026 could expose it to risks from midterm election dynamics, underscoring the urgency for swift action once funding resumes.

During the shutdown—the longest in US history—many agencies, including the SEC, furloughed non-essential staff and limited operations to essential functions only. The SEC’s contingency plan specifies that employees will return on the next regularly scheduled workday following the enactment of appropriations legislation. Prediction markets, such as Polymarket, have adjusted probabilities to reflect a high likelihood of normal operations resuming by Friday, assuming the House passes the bill mid-week. This resumption is critical for crypto stakeholders, as it could facilitate the review and advancement of rules governing digital asset trading platforms and market intermediaries.

Source: Polymarket

The Senate’s late-night vote on Monday passed the “continuing appropriations and extensions for fiscal year 2026” bill with a 60-40 margin, supported by several Democratic senators aligning with Republicans. As Tuesday marks a federal holiday, the House of Representatives is slated to consider the measure no earlier than Wednesday. Once signed into law by President Donald Trump, the bill will end the shutdown that began over 40 days ago, allowing agencies to reopen progressively.

Related: China raises alarm over alleged US role in one of the largest Bitcoin hacks

Frequently Asked Questions

When Will the US Government Fully Reopen After the Shutdown?

The US government is expected to resume normal operations by Friday, following the Senate’s passage of the funding bill and anticipated House approval mid-week, with presidential signature to follow. Agencies like the SEC will recall furloughed staff on the next business day after enactment, restoring full regulatory capacity within days. This timeline aligns with prediction market data indicating over 80% probability of reopening by week’s end.

What Impact Will the Shutdown’s End Have on Crypto Legislation?

Ending the government shutdown should expedite crypto market structure negotiations, which were hampered by reduced staffing in key committees. The Senate Agriculture Committee’s draft bill, building on House efforts, aims to establish clear rules for digital assets. Experts anticipate faster progress once federal operations normalize, potentially leading to enactment before mid-2026, as noted by Senate leaders monitoring election timelines.

Key Takeaways

• Senate Funding Victory: The 60-40 vote secures appropriations through January 2026, ending the historic 40-day shutdown and enabling agency reopenings.
• SEC Operations Resume: Furloughed staff at the Securities and Exchange Commission will return promptly, boosting oversight of cryptocurrency markets and related filings.
• Crypto Bill Acceleration: Renewed bipartisan talks on digital asset structure could advance rapidly, with warnings from Senator Thom Tillis about midterm risks if delayed.

Conclusion

The resolution of the US government shutdown represents a pivotal moment for crypto regulation, as agencies like the SEC reinstate full operations and lawmakers refocus on digital asset market structure bills. With funding secured through early 2026, the path forward includes streamlined negotiations that could solidify the framework for cryptocurrency trading and innovation. Industry participants should monitor House proceedings closely, positioning themselves for regulatory clarity that fosters sustainable growth in the sector.