What if the US Government Shutdown Extends Beyond this Week as Predicted?
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This article was first written in The Bit Journal
Last updated on 21st October, 2025
White House Economic advisor Kevin Hassett says US government shutdown could end this week – but what if it doesn’t, read on to find out.
US President Donald Trump’s adviser on economic affairs, Kevin Hassett, has hinted that the 20-day-old US government shutdown could end this week. The prediction comes following the failure by the Senate for the 11th time to reopen the federal government after the “No Kings” rallies that were conducted across the country. Experts are wondering about the possible impact on the delayed crypto ETF approvals if there’s no consensus.
Force Democrats to Cooperate
According to a report on CNBC, citing Hassett, director of the National Economic Council, said on CNBC’s “Squawk Box,” the US government shutdown, the third-longest in history, that continues with workers missing paychecks, flights increasingly delayed and lower-income families threatened with losing food assistance, was “likely to end sometime this week.”
However, Hassett opined that if the shutdown doesn’t end, the Trump administration would need to impose “stronger measures” to force Democrats to cooperate. Commenting on the standoff that has prolonged the US government shutdown, Hassett stated:
“A lot of our friends in the Senate have said that it was just bad optics for Democrats to open the government before the ‘No Kings’ rally […] and that now there’s a shot that this week things will come together, and very quickly the moderate Democrats will move forward and get us an open government, at which point we can negotiate whatever policies they want to negotiate.”
Different Effects on the Crypto Market
The current US government shutdown has had a serious impact on the crypto space, especially with the delayed crypto ETF approvals like Solana (SOL) and XRP. The US Securities and Exchange Commission (SEC) has been working with a reduced capacity, meaning the said crypto ETF approvals review process remains at a standstill. The lack of a tangible regulatory decision has left many investors in a state of serious anxiety.
Historically, every past US government shutdown has had different effects on the cryptocurrency market. For instance, the 2013 US government shutdown saw the price of Bitcoin rise by 14%, which was a clear indication that investors were confident about cryptocurrencies. Nonetheless, the 2018-2019 shutdowns made the price of BTC drop by between 6% and 10% which further complicated matters.
Conclusion
Should the US government shutdown proceed beyond what Hassett has suggested, there’s every chance that institutional investors could adjust to the regulatory uncertainty.
Whenever delayed crypto ETF approvals have faced them, investors have always shifted their investment strategies to align with the prevailing conditions. Institutional investors could end up adapting to the delayed approvals by diversifying or exploring other ways to seek exposure to crypto that don’t rely on exchange-traded funds (ETFs).
Glossary to Key Terms
US Government Shutdown: A government shutdown occurs when Congress fails to pass laws to fund government operations by the end of the fiscal year.
Crypto ETFs: Cryptocurrency exchange-traded funds (ETFs) offer a way to gain exposure to cryptocurrencies without buying and storing the digital assets yourself. These funds track cryptocurrency prices by investing in futures contracts rather than cryptocurrency itself.
Frequently Asked Questions on Crypto ETFs
What does a shutdown in the US mean?
A government shutdown, in United States politics, is a funding gap period that causes a full or partial shutdown of federal government operations and agencies.
What happens in a US government shutdown?
During a government shutdown, essential services related to national security and public safety like inpatient and emergency medical care, air traffic control, law enforcement, border security, disaster aid, and power grid maintenance, continue, though they may face disruptions.
How will the US government shutdown affect crypto ETF approvals?
With limited staff and halted reviews, the SEC has paused several ongoing processes for applications for new cryptocurrency ETFs, such as XRP and staked Ethereum (stETH). The longer the shutdown continues, the longer these filings will remain pending, leaving asset managers and investors waiting for updates.
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