US Shutdown Stalls Crypto Legislation Ahead of 2025 Deadline
Senator Thom Tillis warns that the US government shutdown since October 1 has stalled key crypto legislation ahead of a critical January–February 2025 deadline. The CLARITY Act on stablecoin regulation and the Responsible Financial Innovation Act on market structure remain stuck in committee. The shutdown has frozen bipartisan talks and delayed Michael Selig’s CFTC nomination, heightening regulatory uncertainty in crypto legislation. Failure to pass these crypto bills could cede US leadership to the EU’s MiCA framework and trigger market volatility. Traders should monitor Senate Banking Committee updates and funding resolutions for clarity on stablecoin rules and market structure.
Bearish
Regulatory uncertainty caused by the government shutdown has delayed key crypto legislation, including stablecoin regulation and market structure reforms. This uncertainty may deter investment and increase price volatility in the short term. Traders face a lack of clarity on stablecoin frameworks and CFTC oversight, which could suppress bullish sentiment. Longer term, failure to advance crypto bills risks ceding market leadership to the EU and undermining confidence in the US crypto market. Overall, the stalled legislation and delayed funding resolutions point to a bearish outlook until regulatory clarity is restored.