D.C. Will Regain Momentum, Says President of Solana Policy Institute

As the U.S. government shutdown stretches into its third week, Kristin Smith, President of the Solana Policy Institute (SPI), is optimistic that “momentum will return” to Washington, D.C., paving the way for much-needed advancements in the cryptocurrency sector.

Smith Comments on the Government Shutdown's Effects on Crypto

In a recent post on X on October 20, Smith remarked, “We’re several weeks into the federal government shutdown in Washington.” She emphasized that while this situation has caused disruption, it has not completely derailed progress. “Crypto progress—in Washington and on Wall Street—continues,” she assured.

1/ We’re several weeks into the federal government shutdown in Washington.

A disruption, yes.
A derailment, no.

Crypto progress — in Washington and on Wall Street — continues.

🧵 — Kristin Smith (@KMSmithDC) October 20, 2025

Despite the shutdown leading to a temporary halt in operations at the U.S. Securities and Exchange Commission (SEC)—which includes delays in approving IPOs and reviewing Exchange-Traded Products (ETPs)—Smith expects that many pending applications will “move forward quickly” once operations resume. “The next phase of crypto policy will define how—and where—innovation happens,” she added. “Washington will reopen. Momentum will return.”

Impact of Shutdown on Crypto ETFs

The U.S. government shutdown has raised concerns among cryptocurrency advocates regarding its effects on the crypto industry. Many digital asset ETFs remain pending approval amid the ongoing political turmoil. Just before the shutdown, the SEC had requested candidates to withdraw their 19-b filings in favor of more generalized listing standards that would replace individual applications.

According to data from the research firm ETFGI, at the end of September, the U.S. ETF industry reached $12.70 trillion in assets, with crypto-specific funds like the Grayscale Bitcoin Mini Trust ETF (BTC US) and the Grayscale Ethereum Mini Trust ETF (ETH US) collectively attracting $220 million.

However, efforts to resolve the federal shutdown remain stalled, with lawmakers unable to agree on a funding plan after yet another failed vote. In a bid to advance crypto policy, Senate Democrats are scheduled to meet with key crypto executives in a roundtable discussion on Wednesday.

As political gridlock continues, the timeline for the resumption of formal digital asset policymaking on Capitol Hill remains uncertain.

Key Takeaways

Kristin Smith, President of the Solana Policy Institute, believes that momentum for cryptocurrency innovation will return to Washington, D.C.
The government shutdown has temporarily impacted the SEC, but significant progress in crypto policy is still expected.
Crypto ETFs are facing delays due to the shutdown, with various digital asset applications pending approval.
The U.S. ETF industry has seen substantial growth, with major crypto-focused funds attracting significant investments.
Ongoing political struggles in Congress have left the timeline for future crypto policymaking unclear.