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XRP News Today: Government Shutdown Postpones Progress on Crypto Regulation, Stalling Crucial Legislation

XRP News Today: Government Shutdown Postpones Progress on Crypto Regulation, Stalling Crucial Legislation

Bitget-RWA2025/11/06 11:18
By:Bitget-RWA

- Democratic wins in NJ/Virginia 2025 governor races weaken Trump's influence in swing states and delay crypto legislation in a divided Congress. - Record 36-day U.S. government shutdown furloughs SEC/CFTC staff, pushing back crypto market structure bill reviews and 2025 enactment timelines. - Bipartisan crypto bill negotiations continue amid mixed market signals: Robinhood's Q3 crypto revenue jumps 300%, while Ripple secures $1B in XRP institutional holdings. - Global challenges persist with Australia san

On November 5, 2025, Democrats achieved significant victories in the gubernatorial elections in both New Jersey and Virginia, undermining Donald Trump’s sway in these pivotal swing states and sparking renewed discussions about the trajectory of crypto regulation in a split Congress, as reported by

. The wins by Mikie Sherrill and Abigail Spanberger, alongside an unprecedented 36-day federal government shutdown, have introduced new doubts about when the long-awaited crypto market structure legislation—designed to create a regulatory system for digital assets—might move forward, according to a .

This government shutdown, now the lengthiest in U.S. history, has led to the furlough of thousands of federal employees, including essential personnel at the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), which has stalled technical assessments of the bill, per a

. Senator Cynthia Lummis (R-WY), a principal backer of the bill, admitted in a Bloomberg interview that the original goal of enacting the law by the end of 2025 is "becoming less and less likely" due to workforce shortages and ongoing political stalemates, the CoinOTag report continued. At the same time, cross-party talks on the bill—especially regarding decentralized finance (DeFi) regulations—are ongoing, with lawmakers targeting early 2026 for a finalized draft, according to a .

The cryptocurrency sector itself has experienced mixed developments. Robinhood’s third-quarter 2025 results showed a 300% increase in crypto trading revenue, reaching $268 million, signaling a resurgence of retail investor activity, as noted by CoinPedia. Yet, the industry still faces challenges as the prolonged shutdown threatens to delay regulatory progress. Patrick Witt, who leads the White House Digital Assets Advisory Council, remarked that while the shutdown has "created certain hurdles," it has also "sparked more dialogue" between lawmakers and industry leaders, Cointelegraph reported.

Ripple, a leading company in the crypto space, is further strengthening its position. During his keynote at the Swell 2025 event, CEO Brad Garlinghouse emphasized the company’s commitment to establishing

as a foundational asset for international payments. Meanwhile, institutional investor Evernorth increased its XRP holdings by $214 million, bringing its total investment close to $1 billion, according to CoinPedia. These developments highlight growing institutional trust in the sector despite ongoing regulatory ambiguity.

These legislative setbacks come as the global crypto industry faces additional obstacles. Australia has enacted sanctions against North Korean hackers responsible for a $1.9 billion crypto heist, underscoring the industry’s exposure to cyber risks, as reported by

. At the same time, some experts believe the CLARITY Act—currently awaiting Senate approval—could curb market manipulation by as much as 90% through tougher anti-wash trading measures and expanded CFTC authority, according to a .

Political commentators argue that the Democratic wins in New Jersey and Virginia could motivate the party to push for more progressive crypto reforms, including protections for DeFi, in the upcoming legislative session. Still, with the government shutdown unresolved and midterm elections approaching, the path to regulatory certainty remains challenging. Senator Thom Tillis (R-NC) pointed out that Congress has until "early January or February 2026" to pass the bill before election-year politics make the process even more difficult, according to CoinOTag.

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