"Government shutdown is imminent!!! SEC emergency actions may change the landscape of the crypto market"
As the U.S. federal government faces the risk of shutdown, the Securities and Exchange Commission (SEC) and the crypto market may face a storm. Government shutdowns are usually caused by insufficient funding, and this crisis stems from President-elect Donald Trump's rejection of a bipartisan budget agreement and his demand to prioritize the debt ceiling. Trump's threats have added considerable pressure within the Republican Party, and House Speaker Mike Johnson is trying to push for a new compromise bill, but the outcome remains unclear.
If the shutdown becomes a reality, the impact will spread to all areas. The suspension of government employees' salaries and food assistance will be direct consequences. For the SEC, its core functions such as market supervision and investor protection will continue, but routine reviews and application processing will be interrupted, including the approval of cryptocurrency ETFs. This regulatory gap may expose the crypto market to greater volatility and risk in the short term.
In fact, the market has already responded to this uncertainty. Mainstream crypto assets such as Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) all suffered heavy losses, with BTC falling 5.73% to $96,522 in 24 hours, ETH and SOL falling 9.85% and 13% respectively. The overall liquidation amount exceeded $1.1 billion.
It is worth noting that independent funding-backed regulators such as the Federal Reserve and the FDIC will continue to operate normally. However, with the SEC's limited enforcement capabilities, the market may face security risks such as fraud and cyber attacks, which is undoubtedly a challenge to the long-term development of the industry.
Political turmoil in the United States has often become a destabilizing factor in the global market, and this time is no exception. The sharp fluctuations in the crypto market and the potential regulatory vacuum deserve investors' attention. For more in-depth analysis, follow Jiaoshou and don't miss every key turning point!
