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Congress woman Maxine Waters has issued a stark warning that a potential U.S. government shutdown could have devastating effects on the cryptocurrency market. As one of the most vocal figures in the House Financial Services Committee, Waters emphasized that the uncertainty surrounding federal operations could shake investor confidence and lead to massive sell-offs across digital assets.
According to Waters, a government shutdown would disrupt key regulatory processes and delay important decisions regarding crypto oversight. Agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) may face temporary closures or reduced functionality, creating confusion among investors and institutions that rely on regulatory clarity. She noted that such instability often triggers fear-driven reactions in financial markets — and the crypto sector, known for its volatility, could be hit the hardest.
The warning comes at a time when cryptocurrencies like Bitcoin and Ethereum have been showing signs of recovery after months of mixed market performance. However, analysts believe that a prolonged shutdown could reverse these gains, pushing prices lower as liquidity dries up and market sentiment turns negative.
Waters also expressed concern about the broader economic impact, stating that a shutdown could affect everything from consumer spending to investor trust in U.S. financial stability. “If the government fails to function, the ripple effects will not spare the crypto industry,” she cautioned.
Investors are now watching Washington closely, hoping for a resolution that avoids further economic disruption. For the crypto market, the next few weeks could determine whether the digital asset space remains stable or faces another major downturn sparked by political gridlock in the U.S. Capitol. $ETH
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