How a U.S. Government Shutdown Could Reshape the Crypto Landscape?
![How a U.S. Government Shutdown Could Reshape the Crypto Landscape?](https://cryptoinvestment.at/wp-content/uploads/2023/09/how-a-u-s-government-shutdown-could-reshape-the-crypto-landscape.webp)
The post How a U.S. Government Shutdown Could Reshape the Crypto Landscape? appeared first on Coinpedia Fintech News
As the U.S. government faces another potential shutdown, uncertainties grip the financial markets. But what does it mean for the burgeoning cryptocurrency sector? From postponed ETF decisions to potential ratings downgrades, let’s break down the far-reaching implications of this looming crisis.
How Law Enforcement Remains Unfazed
A potential shutdown would only partially impact the Department of Justice (DOJ), with 84% of its staff exempt from a furlough. So, rest easy if you were concerned about potential delays in high-profile legal cases involving cryptocurrencies. Law enforcement agencies like the FBI and court proceedings are expected to continue without significant hiccups.
SEC Operations Take a Hit
The SEC, however, paints a contrasting picture. In case of a shutdown, the SEC is expected to function with just 9.5% of its staff. What does this mean for the crypto world? Well, it’s bad news for anyone waiting for decisions on crypto ETFs. The SEC has already begun delaying decisions on a majority of them. The exciting part is the upcoming January 10th, 2024 deadline, where the SEC is expected to make or break the entire spot Bitcoin ETF industry. It’s increasingly likely that the SEC will go all-in, either greenlighting or shooting down the ETFs simultaneously.
Ethereum: A Different Beast
Meanwhile, Ethereum futures ETFs are in a more favorable position, nearing the brink of their launch. Spot Ethereum products? Not so much—those have lower priority by the SEC.
In a week marked by uncertainty, Bitcoin has shown relative resilience with a 1.9% uptick, while traditional hedges like gold fell by 2.9%. Stocks and bonds also trended downwards, but oil gained, adding 2.3%.
While the political stalemate in Washington D.C. undoubtedly brings an air of uncertainty, it may be serving as a litmus test for cryptocurrencies. Will Bitcoin and its digital siblings solidify their reputation as alternative assets, actual “digital gold” in times of crisis? Only time, and perhaps the U.S. Congress, will tell.