The U.S. government faces an imminent shutdown unless lawmakers can strike a last-minute funding deal, raising fresh concerns about delays to the Senate’s long-awaited digital asset market structure bill.
Shutdown threat looms over crypto legislation
Unless Republicans and Democrats reach a compromise on a temporary funding measure, the federal government will shut down at midnight on Tuesday. Such an outcome would halt virtually all legislative activity in Congress, including progress on the digital asset market structure bill that passed the House in July but has yet to be taken up in the Senate.
President Donald Trump is scheduled to meet with congressional leaders on Monday to attempt a resolution. Republicans, though holding majorities in both chambers, require Democratic support to advance a continuing resolution. Democrats have conditioned their support on reversing healthcare cuts included in the July budget measure, which Trump heralded as the “One Big, Beautiful Bill.”
Prediction market chances on the US government shutting down by Oct. 1. Source: Polymarket
A shutdown would stall the work of regulatory agencies such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), alongside delaying any Senate Banking Committee deliberations on the crypto legislation.
Crypto bill already facing delays
The market structure bill—formally known as the Responsible Financial Innovation Act—aims to clarify the division of oversight responsibilities between the SEC and CFTC. Wyoming Senator Cynthia Lummis, a leading Republican voice on digital assets, had originally targeted the end of September for a committee vote. That deadline was later pushed to October, and a shutdown could extend the delay even further.
The House version of the bill, the CLARITY Act, passed in July and laid the groundwork for a regulatory framework governing how crypto assets are issued, traded, and supervised. Market participants have been watching closely, hoping the Senate would take action before year’s end.
Negotiations remain uncertain
Trump has sent mixed signals about negotiations, at one point saying last week that talks with Democratic leaders would not be “productive.” Still, he is set to meet with House Minority Leader Hakeem Jeffries, Senate Minority Leader Chuck Schumer, House Speaker Mike Johnson, and Senate Majority Leader John Thune on Monday.
Republicans have floated a seven-week stopgap bill to extend government funding until November, but Democrats have rejected the proposal, claiming it fails to address their core concerns over healthcare spending.
If no agreement is reached, the government will shut down at midnight on Tuesday, shifting congressional focus away from crypto and toward restoring federal operations.