<\/p>\n
The federal government\u2019s budget is set to expire over the weekend, and lawmakers appear no closer to passing legislation that will prevent a shutdown. If Congress doesn\u2019t come to an agreement soon, it could spell trouble for the crypto industry.\u00a0<\/p>\n
The odds of a government shutdown increased Friday afternoon when the House failed to pass its last-ditch attempt to extend the federal budget past Saturday, with the bill losing in a vote of 198-232. The last government shutdown in 2018 lasted 35 days.\u00a0<\/p>\n
\u201cA government shutdown could cost taxpayers $1 billion to $2 billion per day,\u201d Rep. Blaine Luekemeyer, R-Mo. said.\u00a0<\/p>\n
A government shutdown stops non-essential federal work. A shutdown leaves most federal agencies, including the US Securities and Exchange Commission, with a limited, \u2018essentials-only\u2019 staff. Crypto industry members and legal minds are all but certain this limited staff means zero movement on any digital-asset related agenda matters.\u00a0<\/p>\n
\u201cI seriously doubt any of these agencies are going to be able to carry out any meaningful regulatory action regarding crypto in the event of a government shutdown,\u201d Brian Evans, the CEO and founder of digital asset venture capital firm BDE Ventures, said.\u00a0<\/p>\n
The SEC has already pushed its decision date for the Ark 21Shares Bitcoin ETF<\/a> from Nov. 11 to Jan. 10. A shutdown could also result in paused litigation, SEC Chair Gary Gensler said, adding that his staff would be \u201cskeletal.\u201d\u00a0<\/p>\n \u201cThe normal oversight we have on markets will not be possible,\u201d Gensler said during an interview on Bloomberg Television last week.\u00a0<\/p>\n But having the agency take a step back from crypto might not be the worst thing, Evans said.\u00a0<\/p>\n \u201cGiven the extreme pressure applied by the SEC<\/a> and other agencies on the crypto industry of late, a slowdown in such action resulting from a shutdown would be a welcome breather for crypto-industry participants,\u201d Evans added.\u00a0<\/p>\n Read more:<\/strong> Invesco, Galaxy float latest spot ether ETF proposal<\/a><\/p>\n A shutdown would also pause, or at the very least slow down, crypto legislation\u2019s progress on Capitol Hill, political experts said. Several crypto-related bills have advanced through the markup period, but the odds of a floor vote during a shutdown are next to none.\u00a0<\/p>\n Plus, a shutdown likely will shake up Congress\u2019 priority list even after operations resume as normal, so crypto issues could face further delays.\u00a0<\/p>\n Federal courts have said they are equipped to remain funded until Oct. 13, or about two weeks should a government shutdown last that long.\u00a0<\/p>\n The US District Court for the Southern District of New York (SDNY), where Sam Bankman-Fried\u2019s criminal trial is set to begin next week<\/a>, confirmed with Blockworks that his trial will not stop even if the shutdown extends beyond October 13.\u00a0<\/p>\n The court will continue operating as their employees will be deemed essential. However, there could be hold-ups with other departments like the Department of Justice and US Attorneys office, a representative from the SDNY said.\u00a0<\/p>\n Jurors could also be financially impacted, the representative added. If the judiciary runs out of money, jurors\u2019 pay would be delayed until a budget is approved. US district court jurors are paid $40 per day of service, plus reimbursements for travel costs.\u00a0<\/p>\n Jury selection for Bankman-Fried\u2019s trial is slated for Oct. 3. Should a government shut down occur before then, attorneys are likely to question potential jurors regarding their feelings about delayed payments during the screening process.<\/p>\n Sam Dibble, partner at Baker Botts, added that criminal trials are protected under the Constitution, and will continue through a shutdown. However, the pace of these trials could be slowed depending on which employees are classified as essential. Bankruptcy cases could be another story, however.<\/p>\n FTX, Celsius, BlockFi and Voyager are just some of the crypto companies engaged in bankruptcy<\/a> proceedings.\u00a0<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\nWhat about pending legal matters?\u00a0<\/h2>\n
\n