What Hope Is There For Bitcoin ETF, Cryptocurrencies And Bakkt With The Trump Administration On Shutdown?


The cryptocurrency industry hasn’t been able to recover from the cryptocurrency winter that started in 2018 and now, the United States Government shutdown is about to make everything worst. You see, even if things haven’t been going so well in the industry, the launch of big projects like Bitcoin ETF was expected to turn the tides in the market. Everything is set and the only thing left is approval by the United States Security and Exchange Commission. However, the SEC announced that it has limited its operations to critical functions. Since the evaluation of Bitcoin ETF isn’t a critical function, it’s safe to say that we would not be hearing anything about it anytime soon.


Longest Shutdown In Recent History


Apart from the SEC, the Commodities and Futures Trading Commission also announced that it would be limiting staffing during the shutdown. With no timeline for the shutdown, we can only expect the worst. The key items that the community has been eagerly waiting for may not come anytime soon. Ths cryptocurrency industry will be impacted in the United States and this may have a ripple effect on the entire system. Bakkt will be affected by the shutdown because the CFTC will most likely not leave staff to regulate it when there are more critical issues to attend to. It’s no wonder Bakkt announced that its futures launch has been delayed indefinitely. You can’t really blame them as they cannot function without the necessary regulatory approval.


The shutdown by the government is most likely going to lead to the longest halt in SEC’s operations in recent history. Even if the Bitcoin ETF is going to remain on the table until they are back to full capacity, there is going to be a backlog. The size of the backlog will depend on how long the shutdown lasts. Already, the CFTC and the SEC have issued orders to freeze all administrative processes pending when the federal government calls off the shutdown.


Will Bitcoin (BTC) Be Affected By The Government Shutdown?

Bitcoin is a decentralized system. However, history has proven that it still gets influenced by external factors. The good thing is that the influence isn’t going to be significant because even if things like Bakkt and Bitcoin ETF will boost adoption in the industry, Bitcoin can still stand on its own. These projects are awaiting regulation by the SEC and the CFTC because they are meant for big time institutional investors from Wall Street. If the industry was able to hold the fork for this long without Wall Street, rest assured it can hold on a little longer.


Bitcoin (BTC) Price Today – BTC / USD
Name Price24H (%)
Bitcoin (BTC)
$10,400.00
-5.30%


Right now, the Federal Government cannot perform most of its functions but state agencies are still operating. Also, innovation is still happening amid the federal government dysfunction. True, the shutdown will delay the long-awaited influx of institutional investors but it will not have any drastic effect on Bitcoin and the industry as a whole. Many blockchain-based projects are still ongoing and they will ensure that fundamental growth is stable while we wait for the government to resume its operations.


What do you think? Will the shutdown permanently disrupt the entrance of Wall Street investors?

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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