The US government has been in shutdown mode for now over 30 days; it’s the longest shutdown in the country’s history and it is continuing because the House of representatives doesn’t want to fund Trump’s ‘wall’ on the Mexican border.
Industries are paralysed and workers are unpaid, having to resort to surviving on foodstamps. As CCN says, “It’s almost incomprehensible to anyone living outside the land of the plenty that the majority of its population lives from paycheck to paycheck. This is still the world’s largest economy, after all.”
The situation also poses a problem for cryptocurrencies and blockchain firms. And here’s why. The federal agencies that are in charge of crypto regulation, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), have placed all major developments on ice, due to the shutdown.
CCN interviewed Nishant Jacob, Senior Product Manager at BitBounce, which has 1.4 million users to find out how the shutdown is affecting his business. He outlined four major ways:
1. Hiring employees
“As a business, we have been impacted by being unable to access important immigration services such as e-verify, which affects our current employees and our ability to hire skilled foreign new graduates. This causes potential issues with talent acquisition and retention.”
2. Application delays
“We also expect issues with delays in processing our licensing applications which extends periods of regulatory uncertainty, making business planning more difficult. We imagine this could impact other companies in the industry as well.”
3. Bitcoin ETF approval by SEC delayed
“The SEC is directly impacted by the shutdown and as their website states, they have very limited staff available to respond primarily to emergency situations.”
4. Loss of public positivity about crypto
“We’ve seen a fall in the general trust in institutions ever since the financial crisis which is in part what has helped fuel the interest and growth around cryptocurrencies. We can expect incidents like the shutdown to continue to fuel this distrust and interest in decentralized systems.”
Furthermore, JPMorgan’s CEO predicts that an extended shutdown could slash U.S. economic growth to zero!