CryptoLink Newsletter - September 2025 Updates

Federal funding from the full-year Continuing Resolution (CR) expired on September 30. Without the necessary votes in the Senate to pass a clean CR, the federal government shut down on October 1. Since then, most official congressional activities have been suspended, and the Trump administration has started to carry out reductions in force (RIFs) at the Departments of the Treasury, Commerce, Energy, Education, and HUD. It remains unclear when the shutdown will end and when Congress will return to its normal business. Against the backdrop of the shutdown, Senate Banking Committee members have continued to negotiate comprehensive digital assets legislation. However, the two parties now seem to be at an impasse. Both Senate Banking Committee Chair Tim Scott (R-SC) and Digital Assets Subcommittee Ranking Member Ruben Gallego (D-AZ) have recently released statements criticizing the other side of the aisle following the circulation of proposed Democratic changes to the bill. Republicans have blasted Democrats for refusing to negotiate in good faith, while Democrats have responded that Republicans are failing to address Democratic concerns. Republicans are also pushing Democrats to agree to a markup date, but Democrats have refused to schedule a committee vote before a bipartisan bill is negotiated. If this continues, it is unlikely that a digital assets bill will pass in the Senate before the end of the year.