US government is at risk of shutting down
According to various sources, the US government may have to shut down next week, which may impact the progress of several crypto bills awaiting a vote.
In July, the House Financial Services Committee voted in favor of multiple crypto-focused bills, including the Financial Innovation and Technology for the 21st Century Act (FIT), the Blockchain Regulatory Certainty Act, the Clarity for Payment Stablecoins Act and the Keep Your Coins Act. These bills could lead a House floor vote in the current session of Congress.
However, the shutdown would prevent lawmakers from moving forward on any legislation until they resolve the issue of funding the US government for the next fiscal year.
Ron Hammond, Director of Government Relations of Blockchain Association, said the longer the shutdown goes on, the more bills including FIT/market structure and stables get pushed. Some of the bills have bipartisan support and are likely to pass in floor votes. However, there were a lot of “landmines politically that can tank either bill,” such as the two major parties’ different approaches to stablecoin legislation.
Lawmakers have until Sept 30 to come to an agreement on the spending bills. A shutdown would effectively stop all federal agencies from doing anything considered “non-essential,” which would include many actions from the US Securities and Exchange Commission and Commodity Futures Trading Commission overseeing digital assets.
Celsius plans to distribute $2 billion in Bitcoin and Ethereum to creditors?
Most of the creditors affected by Celsius’ bankruptcy have voted to approve a plan to pay them billions in cryptocurrency. According to bankruptcy resolution firm Stretto, more than 98% of creditor groups of the insolvent crypto lender Celsius have voted in favor of the proposed reorganization plan, which will return between 67% and 85% of their investments.
The final confirmation of the plan’s implementation still awaits approval from the U.S. Bankruptcy Court in New York’s Southern District, with a hearing scheduled for October 2. According to the plan, Celsius creditors will be distributed approximately $2 billion in BTC and ETH, along with shares in a new company managed by Fahrenheit Group.
Fahrenheit Group is a cryptocurrency consortium consisting of Arrington Capital and crypto miner U.S. Bitcoin Corp. Fahrenheit previously won the bid to acquire Celsius Network in May 2023.
The distribution of $2 billion in Bitcoin and Ethereum may somewhat affect the psychology of some investors, thereby causing market fluctuations.
The Fed’s Jerome Powell speaks, the SEC chairman testifies
On Sept 28, Fed chairman Powell and 5 other speakers, including Governor Lisa Cook, will speak to the public. If Powell takes a hawkish stance, it would sweep Bitcoin in particular and the crypto market in general.
On Sept 27, SEC Chairman Gary Gensler will testify at a hearing before the House Financial Services Committee. It is likely that Gary Gensler will mention his view on crypto and if he takes a hawkish stance on crypto, psychology of crypto investors will be somewhat affected.