The US government is headed toward a shutdown if Republicans and Democrats in Congress don’t agree on a spending bill before the end of the day. Should that happen, government services will be temporarily halted. 

Such an event would spark greater economic uncertainty, creating a risk-off environment toward more speculative markets like crypto. The sector may also experience delays in regulatory decisions at the hands of federal regulators like the SEC.

A Political Impasse

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Congress is working against the clock to avoid the first government shutdown in six years. Republicans and Democrats are gridlocked over legislation to fund the government for the 2026 fiscal year. 

Though Republicans have a majority in both chambers of Congress, they do not currently have sufficient votes in the Senate to pass their spending bill.

Democrats are refusing to approve the legislation, arguing that millions of Americans will see their healthcare costs rise if Congress does not extend temporary tax breaks that expire at the end of this year.

“We believe that simply accepting the Republican plan to continue to assault and gut healthcare is unacceptable,” House Democratic Leader Hakeem Jeffries said during a Monday press conference.

Yesterday, Vice President JD Vance said an agreement seemed unlikely.

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“I think we’re headed into a shutdown because the Democrats won’t do the right thing,” he said. 

Should this scenario remain unchanged until

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Author: Camila Grigera Naón