38-Day U.S. Government Shutdown Stalls CLARITY Act
The U.S. government shutdown has now reached day 38, surpassing the 2018â19 record and resulting in the furlough of roughly 650k federal employees. The prolonged stoppage is estimated to be shaving about $30B off weekly GDP, with the government taking on roughly $600B in short-term borrowing to maintain essential operations. The disruption has also stalled progress on the CLARITY Act, a House-approved bill that would divide crypto and stablecoin oversight between the SEC and CFTC. With key Senate committees such as Agriculture and Banking halting votes and operating with staffing levels near 6%, regulatory movement has effectively frozen. Economists warn that, if the impasse extends into mid-November, recession risks could rise. A resolution, however, may set the stage for a sharp relief rally, potentially unlocking trillions in sidelined capital ahead of a politically charged midterm cycle.