US Shutdown End May Revive Crypto Regulation Progress

White House economic adviser Kevin Hassett stated on CNBC’s Squawk Box segment that the three-week US government shutdown is “likely to end sometime this week.” This prediction comes as moderate Democrats appear poised to break the political deadlock that has paralyzed federal operations. Hassett’s comments represent the most definitive timeline yet from a White House official regarding when normal government functions might resume.

The political dynamics surrounding the shutdown have been contentious, with Hassett specifically referring to what he called the “Schumer shutdown,” pointing blame at Senate Minority Leader Chuck Schumer. This terminology reflects the Republican position that has characterized the political standoff. Hassett’s remarks suggest that moderate Democrats are now positioned to provide the necessary votes to reopen the government, allowing for regular legislative processes to resume.

The resolution of the government shutdown carries significant implications for cryptocurrency regulation, which has been effectively frozen during the three-week political impasse. Federal agencies responsible for financial oversight, including the Securities and Exchange Commission and the Commodity Futures Trading Commission, have been operating with reduced staff and limited capacity to advance regulatory frameworks for digital assets.

Hassett indicated that once government operations resume, policymakers would be able to “negotiate whatever policies they want to negotiate with regular order.” This normalization of legislative and regulatory processes is crucial for the cryptocurrency industry, which has been awaiting clearer regulatory guidance from multiple federal agencies. The shutdown’s end would enable regulators to resume work on developing comprehensive frameworks for cryptocurrency oversight that balance innovation with investor protection.

The timing of the shutdown’s potential resolution comes as the cryptocurrency market continues to evolve rapidly, with new products and technologies emerging that require regulatory clarity. The extended pause in regulatory progress has created uncertainty for market participants and potentially delayed important policy decisions that could shape the future of digital asset regulation in the United States.

The political backdrop to Hassett’s prediction reveals the complex dynamics that have characterized the shutdown. His specific reference to Senate Minority Leader Chuck Schumer reflects the partisan framing that has dominated discussions around the government funding impasse. The White House adviser’s comments suggest that a breakthrough may be imminent as moderate Democrats appear ready to support reopening the government.

Hassett’s appearance on CNBC’s Squawk Box provided a platform for communicating the administration’s perspective on both the shutdown’s resolution timeline and the subsequent policy negotiations. His characterization of the process returning to “regular order” indicates that once government operations resume, standard legislative procedures would govern policy discussions, including those related to cryptocurrency regulation.

The end of the shutdown would not only restart crypto regulatory progress but also enable other critical financial policy discussions to move forward. The three-week interruption in government operations has affected multiple agencies and policy areas, creating a backlog of work that will need to be addressed once full staffing resumes. For the cryptocurrency sector specifically, the return to normal operations could accelerate long-awaited regulatory clarity that market participants have been seeking.