The chances of another U.S. government shutdown have fallen drastically in the past 24 hours. This comes as President Trump is said to be nearing a deal with Senator Schumer to stop the government from closing indefinitely.
Trump Signals Deal to Stop Government Shutdown in The U.S.
In new developments, confidence of traders in another government closure has begun to wane. According to Polymarket data, the odds of this happening have crashed by 33% from its previous high of 80%.
This comes amid positive developments in the funding bill for key agencies. According to The New York Times, President Trump and a Democrat Senator, Chuck Schumer, took a step towards a potential deal. This could allow them to negotiate new limits on federal immigration agents and possibly stop another U.S. government shutdown.
The new plans will see the Senate separate the spending for the Department of Homeland Security from the package of six spending bills. The package is needed to fund health programs and other agencies for the rest of the fiscal year. These new bills could be passed before the shutdown deadline by Friday midnight.
Fears of another government shutdown spiked earlier in the week when Senate Democratic policymakers signaled that they would not support the new funding bill after it had initially passed in the House. Schumer had said Wednesday that Democrats will not offer the necessary votes until U.S. Immigration and Customs Enforcement is “reined in and overhauled.”
“The American people support law enforcement, they support border security, they do not support ICE terrorizing our streets and killing American citizens,” he said.
However, it looks like there could be shifts from the side of the Democrats on the U.S. government shutdown after positive talks with the president late Wednesday night.
Why a Shutdown Must Be Avoided?
Currently, there are a couple of regulatory proceedings that could be jeopardized if nothing is done to stop the closure. For instance, the CLARITY Act progress could be stalled once more. As CoinGape earlier reported, another shutdown would halt the bill from being passed as soon as possible.
Notably, the last U.S. government shutdown saw the SEC stop all reviews of new digital asset funds. The timing could also be terrible for the agencies amid their recent policy shifts. Just yesterday, the SEC introduced new rules regarding tokenized assets.
The CFTC has also been making grounds to establish a better framework for regulating assets in the country. All this could be derailed in light of another government closure.