US Shutdown Ending Boosts Crypto Regulation and ETF Reviews
US government shutdown, the third-longest in history, is expected to end this week as moderate Democrats push for a funding bill. The impasse has stalled SEC reviews of altcoin ETFs for LTC, XRP and SOL and delayed broader crypto regulation. Industry figures, including Michael Saylor, have met with lawmakers to discuss Trump’s Strategic Bitcoin Reserve and Sen. Lummis’s budget-neutral BITCOIN Act. With a roundtable set to convene executives from Coinbase, Ripple and Circle to advance a U.S. crypto market structure bill, resolution of the shutdown will allow agency staff to resume routine rulemaking, accelerate crypto regulation efforts and digital asset oversight, and unlock ETF approvals. Despite Polymarket odds still favoring a 71% chance the shutdown extends beyond 30 days, a swift resolution could ease uncertainty, boost trading activity and market momentum.
Bullish
The anticipated end of the US government shutdown reduces regulatory uncertainty and enables the SEC to resume reviews of key altcoin ETFs, including LTC, XRP and SOL. This resumption, alongside planned discussions on the crypto market structure bill with leading industry executives, is likely to stimulate trading activity and investor confidence in the short term. In the long term, renewed momentum in crypto regulation and potential approvals of spot ETFs can expand market participation, improve liquidity and underpin sustainable growth across the crypto sector. Historical precedents show that clarified regulatory frameworks often lead to bullish market rallies, suggesting a positive outlook for the affected cryptocurrencies.