Bitcoin News Today: Senate Ends 43-Day Shutdown Freeze: Crypto Markets Thaw, ETFs on Deck

The U.S. government shutdown, which had stalled regulatory approvals and frozen crypto markets for 43 days, appears to be nearing resolution after the Senate passed a funding bill on Monday. The legislation, backed by bipartisan support, is now awaiting a House vote, with analysts predicting a quick resolution. If the bill clears both chambers, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) could resume operations as early as Thursday, reigniting stalled crypto ETF reviews and enforcement actions. The crypto market responded optimistically, with Bitcoin surging 1.8% to $106,399 and altcoins following suit as traders priced in regulatory clarity.

The end of the shutdown would mark a turning point for the crypto industry, which has been caught in a regulatory limbo since October. During the shutdown, the SEC and CFTC operated with skeleton crews, delaying critical decisions on spot Bitcoin and Ethereum ETFs, as well as enforcement cases against unregistered exchanges. With staff returning to full capacity, agencies are expected to prioritize over 40 backlogged applications, including crypto ETF filings and stablecoin-related rulemaking. Jpmorgan analysts highlighted the potential for Circle's USDC stablecoin to gain momentum as its Arc blockchain-optimized for stablecoin transactions-moves closer to launch. Deutsche Börse and Finistra have already signaled interest in the network, which could enhance USDC's competitive edge against Tether's USDT.

Stablecoin infrastructure is also drawing attention as firms aim to capitalize on growing payment volumes. OwlTing, a stablecoin infrastructure provider, reported $19.4 billion in year-to-date payment volumes for 2025 and is developing systems to process transactions in seconds for fractions of a cent. Meanwhile, Grayscale, operator of the Grayscale Bitcoin Trust (GBTC), filed for an IPO, joining crypto-native peers like Circle in pursuing U.S. public markets. The move underscores institutional confidence in the sector, even as digital asset treasury firms like Solana-focused Upexi turn to share buybacks to stabilize their valuations.

The government reopening could also accelerate progress on the CLARITY Act, a long-stalled crypto regulatory framework. While the bill's fate remains uncertain, analysts argue that a functioning government would create a more predictable environment for crypto firms navigating regulatory gray areas. For now, the focus remains on ETF approvals and enforcement clarity. ETHZilla, a DeFi-focused company, reported $4.1 million in Q3 revenue from Ethereum staking and DeFi deployments but faced a $208.7 million net loss due to non-cash write-downs.

As the House prepares to vote on the funding bill, crypto markets brace for potential volatility. A delayed resolution could trigger a risk-off selloff, particularly among altcoins, while a swift passage would likely reinforce the sector's short-term rally. The coming days will test whether the crypto market can sustain its optimism amid broader economic uncertainties, including Donald Trump's proposed 100% tariffs on Chinese imports.