U.S. House Passes Bill to End Government Shutdown: Implications for Crypto Markets

The U.S. House passed a bill ending the government shutdown with a 222 to 209 vote. Speaker Mike Johnson led the vote, and the bill now awaits President Trump’s signature to officially conclude the 43-day shutdown, the longest in U.S. history.

The government shutdown, lasting 43 days, has been the longest in U.S. history. Passing the bill is crucial as it affects financial markets and government operations, including the regulatory processes impacting cryptocurrencies, notably on the ETF approvals.

The House’s approval marks a significant step towards reopening the federal government after a record-long shutdown. Speaker Mike Johnson instructed members: “Return to Washington, D.C., immediately to resolve the shutdown.” Only two Republicans, Rep. Thomas Massie and Greg Steube, opposed in the House Rules Committee.

The shutdown impacted many sectors, with key government programs reliant on immediate legislative action. Federal funding mechanisms especially those involving SNAP and veterans’ services, are vital. Previous shutdowns briefly influenced both traditional and crypto markets due to regulatory uncertainty.

Financial disruptions from government shutdowns often extend into the cryptocurrency sector due to delayed regulatory actions. U.S. Treasuries and government-backed assets faced funding disruption risks, while crypto market volatility may increase due to unresolved ETF applications and enforcement actions.

Historically, shutdowns slow government regulatory processes, affecting crypto assets like BTC, ETH, and stablecoins. With regulatory approvals potentially delayed, uncertainty surrounding DeFi and tokenized securities can result. Despite this, no immediate on-chain metrics were cited.

Longer-term shutdown impacts could complicate financial, regulatory, and technological landscapes. Analysis from past shutdowns suggests market shifts as government operations resume, affecting ETFs, stablecoin demand, and some DeFi protocols that rely on regulatory clarity. Historical data indicates both resilience and vulnerability in these markets.