Crypto Hearing Expected to Proceed During Government Shutdown Partially

October 10th: The U.S. government shutdown has now lasted for nine days. Owing to the absence of a budget, the cryptocurrency policy agenda remains in a state of uncertainty. However, Washington insiders maintain that the momentum for policy advancement has not been completely dissipated. Although the House of Representatives is in recess due to the shutdown, the Senate seems to still be conducting sessions regarding budget and cryptocurrency matters. Two informed sources have indicated that the Senate Banking Committee remains dedicated to advancing cryptocurrency market structure policy. This includes the possibility of holding deliberation hearings even during the government shutdown. They further added that regardless of whether the budget is passed, the committee leadership hopes to mark up the Responsible Financial Innovation Act by the end of this month. Before the shutdown, one source suggested that the draft was already "nearly finalized." However, with the reduction in federal agency personnel, it is anticipated that it will take more time to make progress. According to sources, agency staff working with congressional committees on policies such as cryptocurrency market structure policy have mostly been placed on furlough during the shutdown, thereby reducing the likelihood of a swift release of the draft. Due to the limited number of federal agency personnel, the approval of new physically-backed cryptocurrency ETFs is not expected to occur before the end of the shutdown. According to the SEC's shutdown operations plan, the agency will not review or approve registration statements, nor will it issue effectiveness notices. Given the SEC's new universal listing standards and the substantial work completed by issuers and agency staff prior to the shutdown, two issuers have expressed confidence that their new products will be promptly approved once federal agencies resume operations.