The change of Speaker of the House in the United States may affect the development of the encryption industry

Recently, there have been significant changes in the U.S. political scene, with Kevin McCarthy being removed from the position of Speaker of the House. This event has not only caused a stir in political circles but may also have far-reaching effects on the encryption currency industry.

Currently, Republican Patrick McHenry, who supports the encryption industry, is serving as the acting Speaker. However, who will become the official Speaker in the future and whether the U.S. government can continue to avoid a shutdown remain unresolved issues. These uncertainties may impact the world of encryption.

In Washington, there are not many lawmakers who truly support the encryption industry. Mike McHenry is one of them. He had threatened to issue a subpoena regarding the interactions between a certain regulatory agency's chairman and a certain collapsed exchange. Currently, McHenry also serves as the chairman of the Financial Services Committee, but this position may change soon.

Some analysts believe that if McHenry is forced to take on the role of official Speaker, he will have to give up his position as Chairman of the Financial Services Committee. This could result in the committee losing a supporter from the encryption industry, thereby affecting the progress of pushing for encryption legislation.

Another person regarded as a potential successor to McCarthy, Tom Emmer, is also an ally of the encryption industry. However, Emmer has previously stated that he has no intention of seeking the speakership.

In addition to the change of the speaker, the risk of government shutdown has cast a shadow over the encryption market. David Duong, the head of institutional research at a trading platform, pointed out that government shutdown events may exacerbate market volatility in the short term. The turmoil in traditional risk assets may spill over into the encryption sector, but this impact could be temporary. Digital assets like Bitcoin are expected to recover quickly, as they typically hedge well against the inherent risks of the traditional financial system.

Although the recent crisis of government shutdown has been temporarily alleviated, the next deadline will arrive in 44 days. These issues will continue to loom over the market. Notably, the operations of the Federal Reserve will not be affected, but it may continue to raise interest rates at the meeting on November 1. According to data platforms, the likelihood of an interest rate hike on November 1 is 20%.

McCarthy's removal marks the first time in American history that a sitting Speaker of the House has been voted out of office. He had just taken office on January 7 of this year, making him the Speaker with the third shortest tenure. The motion for removal was introduced by Republican Matt Gaetz, who demanded that McCarthy disclose the details of the agreements made with the government regarding funding for the war in Ukraine.

This series of political changes will undoubtedly have a profound impact on the encryption industry. Industry insiders need to closely monitor developments in Washington to timely adjust their strategies in response to potential regulatory changes and market fluctuations.