The crypto industry might get a break from US regulators if the federal government undergoes a brief shutdown.
SEC Chair Gary Gensler has raised worries about the agency’s ability to oversee markets during such a shutdown. If a government shutdown happens, it could restrict federal regulators like the SEC, potentially reducing legal actions against the crypto industry.
Possible Government and SEC Shutdown Looms
The US government is set to run out of funding by the end of September, potentially leading to a shutdown if Congress can’t pass a spending bill in time. This shutdown could limit the activities of federal regulators like the SEC, including its oversight of major events.
Gary Gensler, the SEC Chair, expressed concerns about the lack of market oversight in his absence. He mentioned that companies looking to go public might face delays in their filing reviews, although the SEC’s reviewing process is known for its time-consuming nature.
On the positive side, a government shutdown could provide some relief to the crypto industry, potentially reducing the influx of legal actions.
Additionally, during the interview, Gensler was asked about the impact of court decisions on his stance on crypto. He stated that he hoped court rulings could encourage compliance within the industry but maintained his critical view of crypto, referring to industry participants and investors as “fraudsters and hucksters.”
Bitcoin ETF Rejection Possibility
There is a possibility that the SEC may reject a Bitcoin ETF (Exchange-Traded Fund) application. The SEC has a history of rejecting such applications due to concerns about market manipulation and investor protection. While there is ongoing interest in launching a Bitcoin ETF, regulatory hurdles and uncertainties persist, making it uncertain when or if the SEC will approve one.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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