The political farce in Washington has come again - the U.S. government is shutting down.

Don't think of this as just background noise in the news broadcast; it is genuinely affecting the cryptocurrency world with real money. This chain reaction is much more serious than you think.

**Regulatory agencies collectively "go offline"**

Let's start with the most critical issue: the SEC and CFTC, the two agencies that oversee the lifeline of the cryptocurrency industry, are now basically in a state of semi-paralysis. Employees are on leave, offices are closed, and all approvals? Completely stalled.

The most typical victims are those who are waiting for the approval of spot Bitcoin ETFs. The application materials from traditional financial giants like BlackRock and Fidelity were supposed to receive a response in early October, but now? The timeline has completely disappeared. The SEC's review clock has been put on pause, and the legally mandated decision deadline is essentially meaningless.

It is not just Bitcoin that is affected. A rough estimate indicates that over 150 applications for exchange products involving currencies such as SOL and XRP have all been put on hold. The door for traditional funds to enter the market compliantly has now been firmly sealed shut by political games. For those crypto companies hoping for clear regulations before making a big move, this winter feels particularly long.

**Economic data "blindness"**

More covert but more lethal effects are hidden at the macro level.

What does a government shutdown mean? The Bureau of Labor Statistics is no longer releasing data, and the Bureau of Economic Analysis is not updating reports. The market feels like it has suddenly been blindfolded—what's happening with the CPI? How is the employment data? No one knows.

The crypto market is already extremely sensitive to Federal Reserve policies. Now, with key economic indicators missing, traders can only feel their way through the dark. This uncertainty is more likely to trigger panic selling than any negative news.