I was out sick yesterday and so instead of anything resembling a proper newsletter, I have a few thoughts on salient issues of our time, like how an impending government shutdown is probably Not Good News for crypto's D.C. hopes.
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Wait, I've Seen This One Before
The last time the U.S. government shut down, it delayed several approvals for companies and slowed down what many in the industry hoped would be greater regulatory acceptance of crypto.
Why it matters
Well, here we are again. But this shutdown looks to be much weirder than the last one.
Breaking it down
There's a very strong possibility the federal government will be shut down by the time you receive the next edition of this newsletter.
The House of Representatives does not look particularly close to a deal on keeping the federal government running in the short term, with House Speaker Kevin McCarthy facing dissatisfaction from his right flank, decreasing the chances of a continuing resolution that would keep federal employees paid.
We're already seeing the SEC preemptively delay bitcoin ETF applications. Coinbase is also currently looking at an Oct. 11 deadline for a response from the SEC to its Mandamus petition.
My colleague Jesse Hamilton dug into this yesterday for CoinDesk, finding that the shutdown won't quite be a death knell for crypto projects.
One big concern may be for civil and bankruptcy court cases after the first few weeks, when the courts themselves start to slow down. The SEC may also have a limited litigation team during the time period.
Crypto legislation is also likely to be slowed or halted entirely (though these bills have a limited chance anyway), Jesse wrote.
Stories you may have missed
- Binance, U.S. Affiliate, Changpeng 'CZ' Zhao File to Dismiss SEC Lawsuit: Binance, its founder and Binance.US have – as expected, filed to dismiss a lawsuit from the U.S. Securities and Exchange Commission.
- Ex-Senator Who Once Shepherded Crypto Legislation Sees No Path in Current Congress: Former Senator Pat Toomey (R-Pa.) thinks it’s unlikely that crypto legislation will move through Congress in this term.
- UK Just Passed an Online Safety Bill That Will Apply to the Metaverse: The UK’s Online Safety Bill directs companies to check whether users of online platforms will see illegal or harmful (for children) content and find ways of reducing these risks.
- A $27M Crypto Loss Reveals a Toxic Mix of Money-Hungry Traders and DAO Idealists: Danny Nelson spent quite a bit of time digging into Nouns DAO, and it shows – this is an excellent read on the messy world of DAO governance.
- 18:00 UTC (2:00 p.m. EDT) Creditors for Prime Trust met.
- 14:00 UTC (10:00 a.m. EDT) The House Financial Services Committee will hold a hearing with Securities and Exchange Commission Chair Gary Gensler.
- (USCPSC) The U.S. Consumer Product Safety Commission released an album. Like, a musical album. Unironically, this rules.
- (Techdirt) Mike Masnick over at Techdirt analyzes what recent statements on the former bird site by proprietor Elon Musk might mean for its usage.
- (NJ.com) U.S. Senator Robert Menendez (D-N.J.), was indicted on corruption charges last week.
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See ya’ll next week!