The government shutdown, which has now lasted over three weeks in the US, is reportedly expected to end this week. According to White House economic advisor Kevin Hassett, once the ongoing budget impasse between the parties is resolved, long-pending cryptocurrency regulations will be revisited.
"I think the Schumer shutdown will end this week," Hassett said on CNBC, indicating that the process is in its final stages. The Republican Party points to Senate Minority Leader Chuck Schumer as responsible for the shutdown. According to Hassett, "moderate Democrats" will take steps to reopen the government, after which policy discussions can resume as normal.
If no agreement is reached, Hassett said the Trump administration could take "stronger measures," emphasizing that this process should not be prolonged. Earlier this year, Hassett disclosed that he held more than $1 million in Coinbase stock. He is also among Trump's top three candidates for Fed Chair when Jerome Powell's term expires in May 2026.
Shutdown Halts Crypto ETF Approvals
The US government shutdown, which began on October 1st, has become one of the three longest crises in the country's history. The budget dispute has brought operations of many federal agencies to a standstill, directly impacting the crypto market.
ETF applications for altcoins like Litecoin, XRP, and Solana, which are under review by the Securities and Exchange Commission (SEC), have been suspended due to the shutdown. With most SEC staff on furlough, no progress is being made on these pending applications.
However, regulators are expected to re-evaluate these applications once the shutdown ends. The resumption of approval processes for XRP-based ETF products, particularly for major funds like Grayscale, Bitwise, and CoinShares, could create short-term market activity.
Senators Negotiate with the Crypto Sector
While the shutdown continues, discussions on crypto regulation have not completely ceased. This week, Democratic senators will reportedly meet with executives from major companies like Coinbase, Ripple, and Circle. The closed-door session on Wednesday will discuss the future of a bill that will define the structure of the US digital asset market.
This meeting will be a follow-up to a meeting held a few weeks ago, attended by Strategy founder Michael Saylor and 17 crypto industry representatives. That meeting also discussed how the bill, known as the "BITCOIN Act," could enable Bitcoin purchases without burdening the public purse.
Prolonged shutdown likely
Despite Hassett's optimistic statements, market expectations remain cautious. As seen in the chart below, according to prediction platform Polymarket, the probability of the government shutdown lasting longer than 30 days is 77%. This means that the shutdown is still a strong possibility until the end of the month. Market analysts generally believe that a resolution to the situation will be a "relief" for crypto investors.
