5 Minutes
White House Signals Potential End to Shutdown
White House economic adviser Kevin Hassett suggested on CNBC’s Squawk Box that the prolonged U.S. government shutdown, which had weighed on risk appetite across global markets, is likely to end this week. His comments have prompted renewed attention from crypto investors who had grown cautious amid an unusual stretch of political and economic uncertainty.
Market Snapshot: Crypto Pullback on Macro Uncertainty
As markets digested the possibility of a resolution, the total cryptocurrency market cap fell more than 3% in the past 24 hours and hovered just above $3.7 trillion at the time of writing. Bitcoin slid roughly 3.2%, while leading altcoins such as Ethereum (ETH), BNB, Solana (SOL) and XRP experienced daily losses ranging between 1% and 5%. Much of the decline reflected investor caution ahead of the first inflation print released since government services were curtailed during the third week of the shutdown—the longest in U.S. history.
Why an End to the Shutdown Could Support a Crypto Rebound
Multiple catalysts tied to a resumption of normal government operations could restore market confidence for cryptocurrencies.
1. SEC Resumes ETF Reviews
One of the most immediate effects would be the U.S. Securities and Exchange Commission returning to full operational capacity and restarting reviews of spot crypto exchange-traded fund (ETF) applications. Before the shutdown, the SEC was expected to deliver decisions on a slate of altcoin ETF proposals, including listings tied to Solana, XRP and Litecoin. Analysts had been increasingly bullish on approval odds—citing the SEC’s adoption of more generic listing standards for crypto-linked commodity trusts—and a restart of regulatory processing could reignite the ETF-driven rally that pushed markets higher in September.
2. Renewed Economic Data for Fed Decision-Making
The shutdown delayed several key economic releases that the Federal Reserve uses to judge inflation and labor market strength. The Fed’s upcoming policy meeting is closely watched by crypto traders who are pricing the likelihood of rate cuts. Prediction markets and tools pointed to high odds of a 25 basis-point rate reduction—Polymarket showed roughly 96% and the CME Group’s FedWatch Tool indicated near 98.9% probability. When economic data returns to normal flow, the Fed will have improved visibility to support any decisions on easing, which historically affects risk assets including Bitcoin and major altcoins.
3. Progress on Crypto-Focused Legislation
Legislative priorities paused by the shutdown could regain momentum, notably the CLARITY Act, a bill designed to define regulatory boundaries between the SEC and the Commodity Futures Trading Commission (CFTC). Faster movement on this market-structure legislation would reduce regulatory uncertainty, a long-standing hurdle for institutional crypto adoption and spot ETF approvals.
Longer-Term Signals: Strategic Bitcoin Reserve and the Bitcoin Act
Outside immediate policy and data releases, crypto-friendly lawmakers have continued pushing initiatives that could materially change market perceptions. Senator Cynthia Lummis confirmed that plans to establish a Strategic Bitcoin Reserve remain on the table and could be funded once a budget and normal appropriations are back on track. The concept of a U.S. national Bitcoin reserve—paired with the Bitcoin Act—would be a watershed for Bitcoin’s institutional legitimacy and could boost investor confidence if it advances.
What Traders Should Watch Next
Traders and crypto investors should track a short list of indicators as the shutdown potentially wraps up: SEC statements and any updated timelines for ETF rulings, incoming CPI and employment data that influence Fed policy, Congressional progress on the CLARITY Act, and any formal movement on funding for a Strategic Bitcoin Reserve. Together, these developments would address both regulatory and macroeconomic drivers that have been suppressing crypto market sentiment.
Bottom Line
Hassett’s comments that a shutdown resolution may be imminent have given the crypto market a tentative path toward recovery. If federal agencies resume full operations, the SEC can restart ETF reviews, Congress can advance crypto-specific legislation, and the Fed will receive the missing economic data needed to justify future policy actions. Each of these elements could combine to restore momentum in Bitcoin, Ethereum and a broad set of altcoins, although investors should remain mindful that political negotiations could still derail timelines and that market volatility is likely during any transition back to normal governance.
Source: crypto
Comments
blockfuse
Is this even true? SEC restarting reviews could spark a pump, but politics will probably stall it again... watch timelines, not hype
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