🤡 Uncle Sam’s Nap: Crypto’s Chaos or Calm? 🤷‍♂️

by

In the grand theater of human folly, where the machinations of power and greed intertwine like the threads of a poorly woven tapestry, we find ourselves once more at the precipice of absurdity. The U.S. government, that venerable institution of bureaucracy and bickering, has shut its doors, leaving its minions in a state of unpaid servitude. 🤑 Ah, the irony! Those deemed “non-essential” are furloughed, while the rest toil without recompense, though the promise of backpay dangles like a carrot before a weary mule. If this farce concludes within weeks, the crypto policymaking in the halls of D.C. shall scarcely notice the interruption. But should this comedy of errors persist, the gears of progress shall grind to a halt, leaving the crypto world in a state of suspended animation. 🕰️

You, dear reader, are perusing the musings of a humble observer, gazing upon the intersection of cryptocurrency and government, where the absurd meets the profound. Subscribe, if you dare, to this chronicle of folly and wisdom.

The Great Slumber of the State

The Tale Unfolds

On a fateful Wednesday, the government, like a weary old man, succumbed to slumber. As of this writing, the Democrats and Republicans, those eternal adversaries, remain locked in a stalemate, their egos clashing like titans. 🤼‍♂️

Why, Oh Why, Does It Matter?

The immediate consequences, my dear reader, are as clear as mud. Market structure legislation, that noble endeavor, shall be delayed. Federal agencies, those bastions of red tape, shall halt their rulemaking. And the eagerly anticipated spot crypto exchange-traded funds? They shall remain but a dream, at least for now. 😴

Should this shutdown persist but a fortnight, all shall resume with barely a hiccup. Yet, should it stretch beyond, the waters grow murky, and chaos reigns. 🌊

A Deeper Dive into the Abyss

Recall, if you will, the great shutdown of yore, from December 2018 to January 2019, during the reign of President Trump. Democrats held the House, Republicans the Senate, and the nation held its breath. This current debacle, though young, may yet rival its predecessor in duration and absurdity. 🕰️

The most immediate victim of this governmental nap is the exchange-traded fund. The SEC, that vigilant watchdog, had planned to unleash ETFs tracking the likes of Solana and others. Alas, the clock struck midnight before the final papers could be signed, and the issuers were left at the altar. 💔

Yet, not all was lost. The SEC, in a final act of diligence, finalized a pair of no-action letters. The IRS, too, published interim guidance, a small victory in this sea of chaos. 🌟

Ron Hammond, the sage of Wintermute, remarked to CoinDesk, “The crypto policy developments have been a whirlwind of activity, a tempest in a teapot.” With the shutdown, he laments, policymakers are left in limbo, their regulatory actions frozen in time. ⏳

On the legislative front, whispers from the corridors of power suggest that the timeline for market structure legislation may yet remain intact, should the shutdown end within two weeks. Yet, a markup by October 20, 2025? A pipe dream, it seems, for the bill’s text remains a work in progress. 📜

Adding to the farce, the regulatory agencies, now furloughed, cannot offer their counsel. Lawmakers, left to their own devices, must navigate this labyrinth without guidance. A recipe for disaster, one might say. 🧩

Hammond, ever the optimist, declares that December “is still feasible” for legislative progress. Yet, he warns, “The longer this shutdown drags on, the more partisan bitterness seeps into the discourse, like a poison in the well.” Still, he remains hopeful, believing the odds of market structure legislation passing before the 2026 election remain favorable. 🌈

His gaze, ever forward, is fixed on the possibility of a markup in the Senate Banking and Agriculture Committees by Thanksgiving. A feast of progress, perhaps? 🦃

This Week’s Silence

This week, the halls of power are silent. No hearings, no events, no grand pronouncements on crypto. A rare moment of peace, or a harbinger of greater chaos? 🌪️

  • No hearings or events are scheduled this week regarding crypto. 📅

If you, dear reader, have thoughts, questions, or feedback, do not hesitate to reach out. Email me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social. Join the conversation on Telegram, if you dare. Until next week, adieu! 👋

Read More

2025-10-04 19:53