A top White House economic adviser has expressed optimism that the ongoing U.S. government shutdown, now in its third week, could soon come to an end. This development may reignite stalled crypto regulatory efforts.
“I think the Schumer shutdown is likely to end sometime this week,” said Kevin Hassett, speaking on CNBC’s Squawk Box on Monday. Hassett was referring to Senate Minority Leader Chuck Schumer, whom Republicans have blamed for the budget impasse that led to the partial government shutdown.
According to Hassett, moderate Democrats are expected to step in to reopen the government, paving the way for policy negotiations to resume under “regular order.” However, he cautioned that if talks fail, the Trump administration may take “stronger measures” to compel Democratic cooperation.
Shutdown Stalls Crypto Progress
The shutdown, which began on October 1, has entered its 20th day, making it the third longest in U.S. history. The budget standoff has also had ripple effects across the financial sector, with several cryptocurrency-related initiatives put on hold.
The SEC has delayed decisions on multiple ETF applications tied to major digital assets such as Litecoin, XRP, and Solana. Without the necessary staff in place due to the shutdown, regulatory reviews and approvals have been temporarily suspended.
Meanwhile, other crypto-related developments have also slowed. In mid-September, U.S. lawmakers met with MicroStrategy executive chairman Michael Saylor and 17 other industry figures to discuss the Trump administration’s proposed Strategic Bitcoin Reserve.
The discussions focused on how the Lummis-sponsored BITCOIN Act could enable the federal government to acquire Bitcoin in a budget-neutral manner. This is an initiative that now faces uncertainty amid the political stalemate.
Democrats Plan Crypto Roundtable Amid Deadlock
Despite the gridlock, some progress continues behind closed doors. According to reports, a group of Democratic senators plans to hold a roundtable discussion with executives from major crypto firms, including Coinbase, Circle, and Ripple, on Wednesday.
The meeting aims to explore pathways for advancing the proposed U.S. crypto market structure bill, which seeks to provide clearer regulatory guidance for digital asset firms.
Hassett, a known crypto advocate and one of former President Donald Trump’s top contenders to replace Federal Reserve Chair Jerome Powell in 2026, disclosed earlier this year that he holds more than $1 million in Coinbase stock.
While Hassett remains confident that the shutdown will end soon, prediction market platform Polymarket paints a less optimistic picture. Current odds suggest a 71% chance that the standoff will extend beyond 30 days, pushing it into at least October 31.