Hassett Says Shutdown Ending Soon Opening Path for Crypto Regulation

TLDR

• Hassett says shutdown may end this week after 20 days of government pause.
• Crypto ETF decisions for XRP and Solana delayed due to limited SEC staff.
• Lawmakers plan to meet Coinbase and Circle despite federal shutdown.
• Polymarket gives 71% chance shutdown will last more than 30 days.

The United States government shutdown, now in its third week, may be approaching an end. White House economic adviser Kevin Hassett stated on Monday that the shutdown is “likely to end sometime this week,” offering a possible path forward for delayed regulatory action, including developments in cryptocurrency. This comes amid rising pressure from lawmakers and markets, while key crypto policy discussions continue despite limited federal operations.

Hassett Predicts Shutdown Resolution This Week

White House economic adviser Kevin Hassett expressed optimism during a CNBC interview on Monday. He said, “The Schumer shutdown is likely to end sometime this week,” pointing to Senate Minority Leader Chuck Schumer as the cause of the deadlock.

Hassett added that he expects moderate Democrats to break ranks and help reopen the government. “The moderate Democrats will move forward and get us an open government, at which point we could negotiate whatever policies they want,” he said.

If that plan does not succeed, Hassett mentioned the Trump administration could consider “stronger measures” to force legislative cooperation. These comments come as the shutdown enters its 20th day, making it the third longest in U.S. history.

Hassett is known to have personal investments in cryptocurrency and supports regulatory efforts in the space. He is also viewed as one of Trump’s top candidates to replace Jerome Powell as Federal Reserve chair in 2026.

Crypto Regulation Stalls Amid Budget Deadlock

The ongoing government shutdown has caused delays in the review of multiple exchange-traded fund (ETF) applications. These include proposals related to assets such as Litecoin, XRP, and Solana.

The U.S. Securities and Exchange Commission (SEC), which is responsible for reviewing these applications, has reduced operations during the shutdown. As a result, decisions on these crypto ETFs have been postponed.

The shutdown began on October 1 and has disrupted many areas of federal oversight. Applications and meetings tied to market regulation are either paused or running at reduced capacity.

Meanwhile, Polymarket trading data shows a 71% probability that the shutdown will extend beyond 30 days. If true, this could mean continued delays in decisions affecting the crypto market and beyond.

Roundtable Talks to Continue Despite Shutdown

Although the shutdown has disrupted many regulatory functions, not all progress has stopped. Democratic lawmakers are set to meet with crypto executives on Wednesday for a policy roundtable.

Leaders from Coinbase, Circle, Ripple, and other firms are expected to join the session. The discussion will focus on the proposed U.S. crypto market structure bill, which aims to create clearer rules for digital assets.

Earlier in September, before the shutdown, lawmakers met with Michael Saylor and 17 other crypto leaders. That meeting focused on the Strategic Bitcoin Reserve and how Bitcoin can be used in budget-neutral ways.

Despite reduced federal operations, lawmakers continue to seek input from industry leaders to shape the direction of crypto regulation in the U.S.

Shutdown’s Broader Effect on Market Policy

The budget standoff is slowing momentum not just in crypto but across several areas of economic policy. The delay in ETF reviews is part of a broader pattern where agencies cannot move forward with pending decisions.

Some legislative efforts, such as Senator Cynthia Lummis’s BITCOIN Act, are also in a holding pattern until normal operations resume. Lawmakers are looking to resume discussions as soon as the shutdown ends.

The uncertainty has also affected market sentiment. Investors remain cautious as talks continue, and agencies wait for full funding and staffing to return.

The coming days will determine whether Hassett’s prediction holds true and whether stalled federal work will begin to move forward again.

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