The United States is currently experiencing its second-longest government shutdown, which began on October 1, 2025. If the current impasse continues through the upcoming week, it is set to surpass the record for the longest shutdown in the country’s history, currently standing at 35 days. This prolonged standoff is significantly impacting the progress of cryptocurrency-related legislation in Congress.
Since the shutdown’s commencement, legislative efforts surrounding crypto regulation have largely remained stalled. Key deadlines have already been missed, including an important October 20 window for a markup hearing on market structure legislation, which is a crucial step towards advancing legal frameworks for digital assets.
Congress faces shrinking opportunities to address remaining legislative priorities before the end of the year. According to Ron Hammond, Head of Policy and Advocacy at Wintermute, more urgent matters such as the National Defense Authorization Act—a critical military spending bill—are expected to take precedence. This shift limits the amount of congressional attention and resources that can be devoted to crypto policies.
Despite these challenges, there remains cautious optimism in Washington that stalled crypto measures from late summer could gain traction. The Senate Agriculture Committee is preparing a draft bill on market structure that will serve as a significant indicator of future legislative directions. Positive reception of this draft could lead to a markup hearing as soon as Thanksgiving, followed by a potential vote shortly thereafter.
The duration of the shutdown plays a pivotal role in the speed of these developments. Extended governmental inactivity decreases the time available for impactful discussions and decision-making on crypto legislation.
Insider reports suggest potential movement concerning the shutdown itself. Some Democratic lawmakers may consider easing their demands—such as reductions in healthcare premiums—in response to an inability to distribute Supplemental Nutrition Assistance Program (SNAP) benefits during the shutdown. Notably, two federal judges recently ordered the Trump Administration to resume these benefits despite ongoing budgetary disagreements. Should Democrats adjust their position, this might pave the way for legislative sessions before Thanksgiving, though it could also harden stances on market structure reform.
Adding to the political landscape, elections scheduled next week in Virginia and New Jersey will determine various statewide offices including governorships and mayors. These outcomes may further influence legislative priorities in Congress.
In related crypto legal news, the Second Circuit Court of Appeals is set to hear the appeal of Sam Bankman-Fried’s conviction and 25-year sentence on Tuesday, November 4, 2025. This session will be publicly streamed on the court’s website. Additionally, on Thursday, November 6, sentencing is scheduled for Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill following their guilty pleas related to operating an unlicensed money transmitting business.
As the government shutdown continues to unsettle legislative timelines, stakeholders in the cryptocurrency sector are closely monitoring these developments for any shifts that might enable regulatory advancements.
