U.S. economic adviser Kevin Hassett has expressed confidence that the ongoing government shutdown, now in its third week, is “likely to end sometime this week.” With the budget impasse under heavy scrutiny—and several crypto-regulatory initiatives on hold—the anticipated reopening of government operations could usher in renewed momentum for policy action.
Hassett noted that the shutdown was triggered by a standoff between Republicans and Democrats, specifically citing opposition from Chuck Schumer and his Democratic colleagues. He asserted that if moderate Democrats move forward to open the government, the administration may shift into negotiations on broader policy matters “with regular order.” This suggests that ending the shutdown is only the first step: what follows could impact a range of regulatory and fiscal priorities.
Meanwhile, the shutdown—now the third-longest in U.S. history—has stalled several developments in the cryptocurrency arena. Applications for exchange-traded funds (ETFs) for assets like XRP, Litecoin and Solana remain pending with the U.S. Securities and Exchange Commission, delays attributed to the broader budget-related gridlock.
At the same time, a roundtable meeting planned by Democratic senators with crypto industry leaders—including executives of Coinbase and Ripple Labs—is still set to go ahead this week, signaling that regulatory dialogue has not entirely halted.
Implications of an imminent end to the shutdown
Hassett also mentioned that if the shutdown continues to drag on, the administration may resort to “stronger measures” to compel cooperation from the opposition. He added personal context by noting his own substantial crypto holdings and his status as a top candidate to succeed Jerome Powell as chair of the Federal Reserve as early as May 2026.
Despite his optimism, some market analysts remain unconvinced. Projections from the prediction-market platform Polymarket indicate a roughly 71 % probability that the shutdown will persist beyond thirty days—well into the end of October. If that scenario unfolds, the ripple effects from the closure may be felt more deeply across federal agencies and regulatory channels.
As Washington edges toward a possible resolution, stakeholders across sectors—from public servants furloughed during the freeze to crypto firms awaiting regulatory clarity—remain cautiously hopeful. The end of the shutdown may not be just a reset on operations, but a potential pivot point for policy momentum in the months ahead.
