KEY FACTS: The U.S. Senate passed a continuing appropriations bill 60-40 to end a 40-day government shutdown (the longest in history), providing funding through January 31, 2026, and now awaiting House approval likely on Wednesday; the shutdown has cost over $10 billion, furloughed hundreds of thousands of workers, and stalled SEC crypto enforcement and IRS operations. Meanwhile, Polymarket traders raised odds of resolution by Friday to over 70%, and the Senate Agriculture Committee released a bipartisan crypto market structure bill draft splitting oversight between the CFTC and SEC, though shutdown delays threaten its 2026 passage.
Source: US Senate
Senate Passes Funding Bill to End Prolonged US Government Shutdown
The United States Senate has approved a critical funding bill aimed at reopening the federal government after more than 40 days of shutdown, which is the longest in the nation's history. The measure, which passed by a vote of 60 to 40, now heads to the House of Representatives for consideration, where its fate could determine whether millions of federal workers return to their posts and essential services resume operations before the Thanksgiving holiday.
The bill, formally titled the "Continuing Appropriations and Extensions for Fiscal Year 2026," would provide temporary funding for federal agencies through January 31, 2026, averting what could have been an even more catastrophic extension of the impasse. With Tuesday designated as a federal holiday (Veterans Day), the House is unlikely to convene for a vote until Wednesday at the earliest, leaving lawmakers and the public in a state of cautious anticipation. If enacted swiftly and signed into law by President Donald Trump, the legislation promises to inject much-needed stability into a government hobbled by partisan gridlock over spending priorities.
The current shutdown, which began in late September, stems from deep-seated disagreements between congressional Republicans and Democrats over fiscal policy, including debates on debt ceiling increases, border security funding, and discretionary spending cuts. What started as a routine budget negotiation spiraled into a full-blown crisis, forcing non-essential federal operations to grind to a halt and furloughing hundreds of thousands of employees.
From national parks closing their gates to air traffic controllers working reduced hours, the ripple effects have been felt far beyond the Beltway. Social Security payments have continued on autopilot, but new claims processing has stalled, while IRS refund checks for millions of Americans remain in limbo. The economic toll is staggering: Estimates from the Congressional Budget Office suggest the shutdown has already cost the economy upwards of $10 billion, with small businesses and low-income families bearing the brunt through delayed loans and suspended food safety inspections.
The Senate's action on Monday was a fragile coalition of lawmakers. Several Democrats crossed the aisle to join Republicans in support of the bill, a move decried by progressive factions within their own party as a concession to "fiscal austerity." Senate Majority Leader Chuck Schumer, D-N.Y., praised the vote as a "necessary evil" in a floor speech, emphasizing that "prolonging this pain serves no one's interests, not families waiting for benefits, not veterans seeking care, and certainly not our democracy."
On the Republican side, Senate Minority Leader Mitch McConnell, R-Ky., hailed the passage as evidence of the chamber's ability to "put country over caucus." Yet, whispers in the cloakrooms suggest the vote was less a triumph of unity and more a desperate bid to avoid blame for a holiday-season meltdown.
As Washington dithers, the prediction markets have become an unlikely barometer of public sentiment. On Polymarket, a blockchain-based platform popular among crypto enthusiasts and savvy investors, odds have shifted dramatically in favor of the shutdown ending by Friday. Traders, who wager on everything from election outcomes to celebrity scandals, now peg the probability at over 70% that normal government operations will resume within the week, up from a dismal 40% just days ago.
This surge in optimism follows the Senate's vote and reflects broader market confidence that House Speaker Mike Johnson, R-La., can corral enough votes despite resistance from hard-line conservatives demanding deeper spending trims. For cryptocurrency observers, Polymarket's role reflects the growing intersection of decentralized finance and traditional politics. The platform, which runs on the Polygon blockchain, has seen trading volume on shutdown-related markets exceed $5 million, highlighting how blockchain tools are enabling real-time sentiment analysis in an era of opaque congressional dealings.
No corner of the federal bureaucracy has felt the shutdown's sting quite like the Securities and Exchange Commission (SEC), the watchdog agency tasked with policing Wall Street and, increasingly, the wild frontiers of digital assets. With much of its 4,500-strong workforce furloughed, the SEC's crypto enforcement division has been operating on a skeleton crew, delaying investigations into high-profile cases like the ongoing probe into FTX's collapse remnants and emerging stablecoin issuers.
A recent SEC memo, circulated internally but leaked to reporters, outlines contingency plans: If the funding bill becomes law, employees would return on their next scheduled workday, potentially as early as Thursday. During the shutdown, the agency has prioritized "life and safety" functions, such as ongoing market surveillance to prevent flash crashes, but routine filings—like those from decentralized autonomous organizations (DAOs)—have piled up.
The implications for the blockchain industry are profound. Crypto firms, already navigating a regulatory minefield under Chair Gary Gensler's tenure, have seen enforcement actions stall, providing a reprieve but also sowing uncertainty.
While the shutdown drama lasted, a parallel storyline unfolded in the world of digital finance: The Senate Agriculture Committee, in a surprise Monday release, unveiled a discussion draft of a comprehensive bill to establish a regulatory framework for cryptocurrency markets. This long-awaited document, the product of weeks of closed-door negotiations between Democratic and Republican lawmakers, comes roughly four months after the House Financial Services Committee passed its own version, known as the FIT21 Act.
The draft proposes a bifurcated oversight model, dividing responsibilities between the Commodity Futures Trading Commission (CFTC) for spot markets and decentralized tokens, and the SEC for securities-like assets. Key provisions include clearer guidelines for token listings on exchanges, enhanced consumer protections against rug pulls and pump-and-dump schemes, and incentives for blockchain innovation through tax credits for compliant projects. Notably, it sidesteps the contentious issue of algorithmic stablecoins, deferring to future rulemaking.
As the funding bill hurtles toward the House, its passage could serve as a litmus test for the 119th Congress's ability to deliver on thornier issues, including crypto regulation. Republicans, buoyed by President Trump's pro-innovation rhetoric, see the market structure bill as a legacy win, with the possibility ot unlocking billions in institutional investment and positioning the U.S. as the crypto capital of the world.
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