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- 1 Speaker Kevin McCarthy’s proposals faced opposition from hard-right lawmakers within The United States House of Representatives.
- 2 There is a possibility that cryptocurrency-related bills could lose priority among lawmakers.
The United States House of Representatives recently decided to reject a bill passed by the Senate. It was intended to fund the government and created a significant impasse. Furthermore, Speaker Kevin McCarthy’s proposals have faced resistance from hard-right lawmakers within the House.
The developments collectively point to the possibility of a partial government shutdown commencing on October 1. This explains the challenges to reach a consensus on critical issues such as government funding within the political landscape in the U.S.
In the event of a U.S. government shutdown, allegedly caused by Congress’s inability to pass funding legislation for the upcoming fiscal year, all nonessential operations within federal agencies and departments will see a termination.
Even if the shutdown were for a shorter timeframe it’s plausible that cryptocurrency-related bills could lose priority among lawmakers once government activities resume.
Government shutdowns typically disrupt legislative agendas and are able to delay or defer the consideration of bills. It includes those related to cryptocurrencies, as lawmakers grapple with addressing the immediate fiscal and operational challenges.
During the shutdown, bills related to digital assets would likely be put on hold. Also, regulatory agencies responsible for overseeing financial matters, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), would operate with minimal staff.
In the event of a government shutdown, legislative progress on cryptocurrency-focused bills like the Financial Innovation and Technology for the 21st Century Act, the Blockchain Regulatory Certainty Act, the Clarity for Payment Stablecoins Act, and the Keep Your Coins Act would come to a standstill.
This would mean no amendments or floor votes on these bills would occur while the government is shut down. Government shutdowns typically disrupt the legislative process and can lead to delays in addressing important issues like cryptocurrency regulation and innovation.
During a government shutdown, the attention and priorities of Congress can indeed shift rapidly to various pressing issues.
Additionally, with the 2024 elections drawing closer, there may be added distractions and political considerations at play. Treasury Secretary Janet Yellen expressed opposition to the “House Republicans’ failure to act” showcasing the potential economic repercussions and concerns that are related to a government shutdown.
Government shutdowns are widely seen as a disruptive and unnecessary event. It could have adverse consequences for the economy and government operations. These factors highlight the complexity and consequences of shutdowns in the broader political and economic context.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
