The post Crypto Legislation Faces Major Setback as U.S. Government Shutdown Drags On appeared on BitcoinEthereumNews.com. Regulations Efforts to craft the first clear regulatory framework for digital assets in the United States have been thrown into chaos by Washington’s ongoing government shutdown. The deadlock has frozen communication between agencies and lawmakers, leaving the long-awaited crypto market structure bill in limbo. The bill, designed to finally clarify the division of authority between the SEC and CFTC, was considered one of the most promising steps toward comprehensive crypto regulation. But as thousands of government employees remain furloughed, the legislative machinery has slowed to a crawl. Negotiations on Pause Behind closed doors, most staff responsible for refining the bill’s language are absent. According to Kristin Smith of the Solana Policy Institute, the timing couldn’t be worse. “Momentum was finally building,” she said. “Now we’ve hit the biggest pause the industry has faced all year.” Market observer Ron Hammond from Wintermute believes there’s still a slim chance of progress before year-end, estimating the odds at about 60%. But he warns that a prolonged standoff could push the bill well into next year – or beyond. Election Politics Complicate the Timeline As the 2026 midterm elections draw closer, crypto legislation is becoming less about policy and more about politics. Lawmakers on both sides are wary of backing complex financial reform during campaign season. Some Democrats have even woven Donald Trump’s crypto ventures – including his involvement with World Liberty Financial and the TRUMP memecoins – into their election messaging. Others, like Rebecca Liao, CEO of Saga, argue that digital-asset policy shouldn’t be sidelined. “Crypto regulation is not a niche issue anymore,” she said. “But the longer the shutdown drags on, the easier it becomes for politicians to avoid it.” Complexity and Contention Even before the political gridlock, the bill was proving difficult to finalize. Lawmakers remain divided on how to define… The post Crypto Legislation Faces Major Setback as U.S. Government Shutdown Drags On appeared on BitcoinEthereumNews.com. Regulations Efforts to craft the first clear regulatory framework for digital assets in the United States have been thrown into chaos by Washington’s ongoing government shutdown. The deadlock has frozen communication between agencies and lawmakers, leaving the long-awaited crypto market structure bill in limbo. The bill, designed to finally clarify the division of authority between the SEC and CFTC, was considered one of the most promising steps toward comprehensive crypto regulation. But as thousands of government employees remain furloughed, the legislative machinery has slowed to a crawl. Negotiations on Pause Behind closed doors, most staff responsible for refining the bill’s language are absent. According to Kristin Smith of the Solana Policy Institute, the timing couldn’t be worse. “Momentum was finally building,” she said. “Now we’ve hit the biggest pause the industry has faced all year.” Market observer Ron Hammond from Wintermute believes there’s still a slim chance of progress before year-end, estimating the odds at about 60%. But he warns that a prolonged standoff could push the bill well into next year – or beyond. Election Politics Complicate the Timeline As the 2026 midterm elections draw closer, crypto legislation is becoming less about policy and more about politics. Lawmakers on both sides are wary of backing complex financial reform during campaign season. Some Democrats have even woven Donald Trump’s crypto ventures – including his involvement with World Liberty Financial and the TRUMP memecoins – into their election messaging. Others, like Rebecca Liao, CEO of Saga, argue that digital-asset policy shouldn’t be sidelined. “Crypto regulation is not a niche issue anymore,” she said. “But the longer the shutdown drags on, the easier it becomes for politicians to avoid it.” Complexity and Contention Even before the political gridlock, the bill was proving difficult to finalize. Lawmakers remain divided on how to define…