US Government Shutdown Threatens Crypto Market Stability

The US government shutdown has triggered a significant disruption in the cryptocurrency sector, raising concerns about its long-term stability. Investment bank TD Cowen warns that this halt in federal agency operations, particularly the SEC’s work, has put crypto policy on hold. The shutdown has effectively frozen the SEC’s ability to finalize changes for the crypto industry, including potential exemptions for new products and digital asset companies offering tokenized stocks. Analysts suggest a substantial delay, potentially extending beyond weeks or even months, as employees return and address backlog demands.