The U.S. government shutdown will affect the development of some crypto products according to some crypto analysts. The shutdown will affect the regulatory agencies in giving crypto investment products appropriate attention in the near future according to the analysts.
Effect of Government Shutdown On Development Of Crypto Products
Development of crypto products is bound to see setbacks this year according to some crypto analysts due to the U.S. government shutdown. Though the government has resumed temporarily, the effect of the shutdown is bound to be detrimental to crypto product development.
The shutdown of the government from the 22nd December 2018 to the 25th of January, the government which was the longest ever in the history affected the functions of CFTC and the SEC. The agencies presently have to catch up with the five weeks it was non-functional due to the shutdown. And during the period of catch up, no preferential treatment is to be given to digital products as revealed by some crypto industry advocates.
The end of the shutdown is still temporary till the issue that caused the shutdown is settled. The shutdown was caused by the disagreement of the president Donald Trump and the Congress over the funding of the U.S., Mexico border wall. An agreement is yet to be reached on it, and the temporary break of the shutdown is bound to resume once again provided a consensus is reached before February 15.
The chief operating officer of the wall street blockchain alliance stated that the shutdown would have an enormous repercussion on the crypto space. He noted that he couldn’t imagine any company trusting that the government will not be shut down again following the 21 days reprieve. He further stated that until there is more certainty that the government will not go shutdown again in 21 days, federal regulators will focus their activities on serving the broadest segment of the population and addressing their highest priorities which may not include crypto.
Economic Impact of Government Shutdown and Crypto Advantage
The government shutdown affected economic activities partially as some government workers had a delay in getting paid because of the effect of the shutdown. The event which rendered many waiting on the government for pay would have no place in the crypto setting where there is no external influence to transaction and movement of funds on it.