Record-Breaking Government Shutdown Stalls Crypto Legislation in Congress

TLDR

• The U.S. government shutdown started on October 1, 2025 and is already the second-longest in American history at over 30 days.
• If the shutdown continues through Wednesday, it will break the record of 35 days set by the longest shutdown in U.S. history.
• Congress has missed multiple deadlines for crypto legislation, including an October 20 markup hearing on market structure bills.
• The Senate Agriculture Committee’s draft market structure bill could signal progress, with a potential markup hearing around Thanksgiving if the shutdown ends.
• Democrats may drop demands for lower healthcare premiums after two federal judges ordered the Trump Administration to resume SNAP benefits during the shutdown.

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The U.S. government shutdown that began on October 1, 2025 has entered its second month with no resolution in sight. Congress failed to reach a funding agreement before the deadline. The shutdown is now the second-longest in American history.

If the shutdown continues through Wednesday of next week, it will break the record of 35 days. That record was set during a previous shutdown. The extended closure has created problems for various government functions and legislative priorities.

Crypto legislation has been one of the casualties of this political standoff. Bills related to cryptocurrency regulation have been stuck in Congress since before the shutdown began. The longer the government remains closed, the less likely these bills will move forward this year.

Congress has already missed several self-imposed deadlines for crypto legislation. The most recent was a tentative October 20 date for a markup hearing on market structure legislation. These missed deadlines have pushed crypto policy further down the priority list.

Time Running Out for Legislative Action

Wintermute Head of Policy and Advocacy Ron Hammond noted that Congress will face competing priorities as the year ends. The National Defense Authorization Act is a must-pass military spending bill that will take precedence. Other essential legislation will also demand attention from lawmakers.

Despite these challenges, some optimism remains in Washington, D.C. about crypto legislation that stalled near the end of summer. The Senate Agriculture Committee’s draft market structure bill is the next item to watch. This draft could indicate the direction of the overall legislative package.

If lawmakers respond positively to the Senate Agriculture Committee’s draft, they could schedule a markup hearing around Thanksgiving. A vote could follow shortly after. This timeline depends on resolving the current shutdown and clearing other legislative hurdles.

The shutdown itself presents a complicating factor for this timeline. Each day the government remains closed reduces the available time for Congress to address different legislative issues. Crypto bills must compete with other priorities for limited floor time.

Political Developments and Next Steps

A source familiar with Washington politics told CoinDesk there are rumors about potential movement on the shutdown. Democrats may drop their demands for lower healthcare premiums within the next week or so. This change could come because the Trump Administration refused to distribute Supplemental Nutrition Assistance Program benefits during the shutdown.

Two federal judges ordered the administration on Friday to resume SNAP benefits regardless of the shutdown. This judicial action could affect the political calculations around ending the shutdown. Democrats may be less willing to compromise on market structure legislation if they are forced to give in on shutdown demands.

Next week will bring another election with several important races. Voters will choose representatives, mayors and governors in Virginia and New Jersey. They will also decide on various statewide ballot initiatives.

The Second Circuit Court of Appeals will hear Sam Bankman-Fried’s appeal on Tuesday at 10:00 a.m. ET. His legal team is appealing his conviction and 25-year sentence. The hearing will be the second case heard by a three-judge panel that day.

On Thursday at 11:00 a.m. ET, Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill will be sentenced. They pleaded guilty in July to conspiracy to operate an unlicensed money transmitting business. The hearing will conclude their legal proceedings in this case.

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