U.S. Government Shutdown Cripples Crypto Regulation, Impacting Market Liquidity and Sentiment

The ongoing U.S. government shutdown, exceeding 36 days, is significantly impacting cryptocurrency market regulations. This delay in progress has caused a tightening of financial stability and negativity across the digital asset sector. The lack of regulatory clarity and policymaking due to the political impasse between congressional leaders and the White House has frozen funding for regulators such as the SEC and CFTC, resulting in stalled policy reviews and delays.