The United States government is about to face issues in the upcoming days that can result in some crucial bills stalling. The issue that can push back important legislation to move ahead is about lawmakers, especially Republicans, demanding for management of spending plans. It becomes important for crypto since the hold of bills includes some of the major proposals related to crypto assets awaiting further updates.
The lawmakers with the House Finance Services Committee reportedly voted for a number of crypto-related bills in July 2023. The list of bills includes the Blockchain Regulatory Certainty Act, the Financial Innovation and Technology for the 21st Century Act (FIT), the Clarity for Payment Stablecoins Act, and the Keep Your Coins Act.
Cryptocurrency regulations remain among the most discussed topics in the crypto space with the community seeking clarity on the rules around it. Lawmakers in the region have seen to come forward and support the voice of clear regulations along the list of aforementioned legislations shows the efforts.
Though these bills took off and went through their first stage after the committee’s approval, they await the vote on the House floor during the ongoing session of Congress. Given the said halt on the process of moving, the legislation ahead is also going to stop the process of any crypto asset bill for further steps.
The prospect of a government shutdown is causing concern in the cryptocurrency industry, particularly regarding the potential delay of important bills related to financial technology (FIT), market structure, and stablecoins.
The division and disagreements within the House and Senate add uncertainty to the situation. A prolonged shutdown could lead to a backlog of legislative initiatives, impacting the crypto sector.
The potential government shutdown has raised concerns about the fate of cryptocurrency-related bills that enjoy bipartisan support and are set for floor votes. Political disagreements between the major parties, especially concerning stablecoin legislation, could pose challenges and potentially hinder the progress of these bills.
The looming government shutdown deadline of September 30 is before the start of the next fiscal year. It is a critical date for lawmakers to reach an agreement on spending bills.
In the situation of a potential shutdown, there would be a disruption in the operations of federal agencies. This includes regulatory bodies like the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), which play a role in overseeing digital assets.
However, the efforts are continuing to keep the process in motion as Speaker McCarthy reportedly prepares to bring spending bills. With this action taking place, the restricting actions of lawmakers are likely to go softer on the complete condemnation of legislation approvals.