U.S. Government Shutdown Hits Record Length, Delays Crypto Market Structure Legislation

The ongoing U.S. government shutdown has now become the longest in history, surpassing the previous 35-day record. Lawmakers remain gridlocked over federal budget funding, a divide intensified by Democrats’ strong performance in Tuesday’s off-year election. The results may further delay negotiations, particularly around healthcare and fiscal priorities, according to policy experts cited by CoinDesk.

Before the election, expectations were rising that Democrats might compromise and move to reopen the government without achieving major policy concessions. However, their electoral gains appear to have strengthened their bargaining position, potentially extending the shutdown and delaying legislative progress — including the long-anticipated crypto market structure bill.

Sources familiar with the matter said that while a markup on the legislation could still happen by Thanksgiving, the chances of passing a comprehensive market structure framework before the end of 2025 remain slim. Some policy experts believe the legislation could be delayed until 2026, especially as many government staff involved in drafting the bill have been furloughed during the shutdown.

Summer Mersinger, CEO of the Blockchain Association, emphasized that the prolonged government closure reduces the likelihood of near-term action on crypto regulation. Despite these setbacks, Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, told attendees at Ripple’s Swell conference that President Donald Trump still aims to see a final bill on his desk by the end of 2025.

Witt noted that the shutdown, while disruptive, has created opportunities for deeper policy engagement with lawmakers. “We’ve been able to meet with Senators and staff on the bill’s substance in ways we couldn’t have otherwise,” he said, expressing optimism about ongoing bipartisan discussions shaping the future of U.S. crypto regulation.