While it’s no secret that the ongoing partial U.S. government shutdown has greatly impacted the American economy, the crypto industry has not been exempt from its effects either, CCN writes. With multiple federal agencies responsible for digital currency regulation being forced to shut down operations for over a month, many companies are left with a sense of insecurity.
“A lack of regulations can, unfortunately, create uncertainty which makes it hard to plan towards longer-term goals,” said Nishant Jacob, Senior Product Manager at BitBounce. He added that the furlough of agencies like the SEC could “impact timelines around their processing of things like a Bitcoin ETF as the backlog continues to grow.”
Despite the negative effects of the shutdown, Jacob believes that there’s an upside to the whole situation—the increasing distrust in the federal institutions could potentially turn the public towards cryptocurrencies. “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,” said Jacob.