What happened?
The U.S. government shut down at midnight after Congress failed to pass a funding bill, marking the first shutdown since 2018. Federal agencies are now without funding as the new fiscal year begins, leaving essential services under-staffed. The stalemate comes amid talk of deeper budget cuts and possible permanent layoffs at some agencies.
Who does this affect?
About 800,000 federal workers—nearly 40% of the workforce—are expected to go without pay, and many could be furloughed. The shutdown threatens disruptions across public services, from air travel and parks to slowed data releases and regulatory reviews. The crypto industry is also affected because the SEC and other regulators are operating on skeleton crews, meaning ETF filings and approvals are likely to be delayed.
Why does this matter?
The shutdown raises market uncertainty that can unsettle investors and spike volatility, especially for crypto assets and smaller tokens. Delays at the SEC could push back spot crypto ETF approvals and slow momentum built in September, weakening sentiment into year-end. If the shutdown is short markets tend to recover quickly, but a prolonged impasse could stall key decisions (including at the Fed) and hurt market confidence.