The US government shutdown entered its sixth day on Monday, with key financial agencies like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) operating under severe restrictions and limited staff. Many federal employees have been furloughed, while others continue to work without pay as lawmakers fail to reach a funding agreement.
No Deal in Sight as Congress Faces Stalemate
As of Monday morning, no deal had been reached between Republican and Democratic members of Congress to end the government shutdown and restore normal operations. The Senate was set to vote on a continuing resolution at 5:30 p.m. ET to temporarily fund the government, though it remained unclear whether the measure had enough support to pass.
The primary sticking point in negotiations centers on healthcare funding, with Democrats insisting that any spending bill must reverse the cuts made in a July budget measure.
Financial Regulators Hampered by Shutdown
The ongoing shutdown is severely limiting operations at major US financial regulatory agencies. The SEC confirmed it is functioning “under modified conditions” with an “extremely limited number of staff” until new funding is approved. This situation is expected to delay reviews of crypto exchange-traded fund (ETF) applications and other digital asset-related proposals.
The CFTC, already stretched thin with only one commissioner serving as acting chair, is also operating with minimal capacity. Both agencies play a vital role in maintaining confidence in financial markets and cryptocurrency regulation, and their inactivity could have broader consequences.
Impact on the Crypto and Digital Asset Industry
Experts warn that the extended shutdown could harm the US crypto industry.
“The US government shutdown can damage the crypto industry by disrupting the SEC and CFTC, which are vital to global digital asset markets,” said Przemysław Kral, CEO of crypto exchange Zondacrypto.
Kral added that while the immediate impact may seem limited, “reduced operational capacity risks stalling innovation and reducing investor confidence, particularly in a region already playing catch-up with crypto regulation.”
With the shutdown ongoing, the Senate is unlikely to advance legislation aimed at establishing a comprehensive digital asset market structure. Similarly, President Donald Trump is not expected to nominate replacements for CFTC commissioners during this period.
Last week, the White House withdrew the nomination of Brian Quintenz as CFTC chair following reported opposition from Gemini co-founders Cameron and Tyler Winklevoss, both Trump donors and supporters.
Crypto Markets React With Shutdown Predictions
In the prediction markets, crypto users are actively betting on how long the government shutdown will last. Platforms like Kalshi and Polymarket show that traders expect a prolonged — but not record-breaking — shutdown.
According to Kalshi, there was a 69% probability that the shutdown would last more than 15 days and a 41% chance it would extend beyond 25 days. On Polymarket, users gave a 24% chance that the current shutdown would become the longest in US history but a 72% chance it would end after October 15.
The current government shutdown began after federal funding expired at midnight on September 30, marking another critical test for Washington’s ability to manage fiscal and regulatory stability amid growing tensions over spending priorities and economic policy.
