This article was first published on Deythere.
A 43 day US federal government shutdown officially ended on November 12, 2025; after President Trump signed a funding bill ending the longest shutdown in US history.
During the shutdown; major regulators like the Securities and Exchange Commission and Commodity Futures Trading Commission were largely out of commission; delaying crypto milestones like ETF approvals and rule-making.
With the government back up and running, the government shutdown impact is already visible: crypto markets are reacting, regulatory backlog is clearing, and crypto-specific legislation can move.
Government Shutdown and Impact on Crypto
The government shutdown began when Congress failed to pass a funding bill for fiscal year 2026; and large swaths of the government shut down on October 1, 2025.
The House vote to reopen the government passed 222-209; and was eventually signed by President Trump. While most of the coverage was about federal workers and travel disruptions; the crypto space was also impacted.
According to Reuters, “As of October 1, 2025, U.S. financial regulators began furloughing staff … this shutdown impairs key market functions including IPOs and crypto based ETFs.”
The extended closure meant agencies critical to crypto oversight were shut down while crypto participants waited for decisions; hence disrupting regulatory flow.
Crypto Markets and Regulatory Backlog Wake Up
With government back up and running, regulatory activity is resuming and crypto markets are reacting.
According to reports, the reopening brings relief to global markets. The reopening of agencies like the SEC and CFTC also revives pending ETF approvals and crypto related rule-making.
Before the reopening, there was no regulatory clarity and investor sentiment was impacted.
The reopening now means crypto regulation can move again.
How Crypto Bills and ETF Review Were Affected
The shutdown didn’t just stop day to day regulatory activity but also critical crypto industry items.
According to reports, the government shutdown left a number of spot-crypto exchange-traded fund applications sitting on the Securities and Exchange Commission’s desk.
Without staff and processing capacity, the SEC and CFTC couldn’t move asset class defining items.
With the government shutdown over, processes related to crypto legislation, ETF approvals and market structure changes are back in motion.
Industry commentary says: “With short-term funding now locked in … agencies will start services over the next few days – good news for crypto bills and ETF applications.”
Conclusion
Beyond the immediate impact, the reopening means several implications for the crypto sector. The return of regulators means policy clarity is coming, which will reduce uncertainty and increase institutional participation.
The backlog of filings and rule-making is a potential wave of approvals that will buoy crypto investment products.
Additionally, the government shutdown showed how crypto regulation is somehow dependent on government funding; as one article notes, “weeks of stalled operations … had spooked markets.”
Glossary
ETF (Exchange-Traded Fund): a fund traded on exchanges that represents an asset; and tracks an index.
SEC (Securities and Exchange Commission): the US federal agency that regulates securities markets; and protects investors in the US.
CFTC (Commodity Futures Trading Commission): the US federal agency; that regulates futures and options markets and is proposed to oversee digital-commodity spot markets.
Spot market: a public market where financial instruments or commodities are traded for immediate delivery; in crypto, spot ETFs require regulatory review.
Frequently Asked Questions About Government Shutdown Funding Bill
How long was the 2025 shutdown and when did it end?
43 days; and President Donald Trump signed the funding bill on November 12 2025.
Why does this matter for crypto?
Because regulatory agencies like the SEC and CFTC couldn’t process filings, make decisions or issue guidance during the shutdown, delaying crypto-investment products and market structure developments.
What now that the government shutdown is over?
Regulators are back to work, crypto-related filings will be processed, legislation and rule-making that stalled can move forward. Crypto markets are expected to up.
Does this mean crypto ETFs or new rules?
No. Reopening just restores operational ability. Approvals and rule-making still require regulatory review; legal processes and political negotiation. The shutdown is over but the outcome is still to be seen.
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