Change of Speaker of the U.S. House of Representatives May Affect the Prospects of the Encryption Industry

Recently, there has been a major shift in American politics, as House Speaker Kevin McCarthy has been removed from office. This event could have far-reaching implications for the encryption industry. Republican Patrick McHenry, who supports the encryption industry, has temporarily taken over as Speaker, but the future political landscape remains full of uncertainty.

Currently, the candidate for the new speaker has not yet been determined, and whether the U.S. government can continue to operate after the temporary funding agreement expires on November 17 is also a pending question. The outcomes of these two key issues may have significant implications for the encryption currency sector.

In Washington, there are not many politicians who support encryption currencies, and Mike Henry is one of them. He once threatened to subpoena the chairman of a regulatory agency regarding the interactions with a defunct encryption exchange. If Mike Henry ultimately becomes the official speaker, he will have to give up the position of chairman of the Financial Services Committee that he currently holds.

A regulatory affairs expert pointed out that if McHenry leaves the position of Chairman of the Financial Services Committee, it would mean that the committee loses a supporter of the encryption industry, which could affect the advancement of future encryption legislation. Another individual viewed as a potential candidate for the chairmanship, Tom Emmer, is also a supporter of the encryption industry, but he stated last week that he has no intention of competing for the position.

In addition to political changes, the risk of government shutdowns may also cast a shadow over the encryption market. David Duong, the head of institutional research at a well-known trading platform, stated that government shutdown events could intensify market volatility in the short term. He believes that the turmoil in traditional risk assets may spill over into the encryption sector, but this impact is likely to be temporary. Digital assets like Bitcoin are expected to recover quickly, as they tend to hedge well against the inherent risks of the traditional financial system.

Although the government shutdown crisis has temporarily been resolved, there will be another deadline in 44 days, and the market remains shrouded in uncertainty. It is worth noting that the recently reached agreement ensures that the Federal Reserve will not be affected, allowing the Fed to continue obtaining key economic data.

However, the Federal Reserve may continue to raise interest rates at the meeting on November 1, which will lay the foundation for a market rebound before the end of the year. Currently, the market expects the likelihood of an interest rate hike on November 1 to be about 20%.

The vote to impeach the current Speaker of the House is the first of its kind in American history. McCarthy took office in January this year, becoming the third shortest-serving Speaker. He pushed through a bill at the last minute to avoid a government shutdown, a move that sparked dissatisfaction among some of his colleagues, especially the far-right Republicans in the House.

The motion to dismiss was proposed by Republican Matt Gaetz, who demanded that McCarthy disclose the details of the agreement reached with the government regarding funding for the war in Ukraine. This series of political turmoil will undoubtedly have a profound impact on the future development of the encryption industry, and industry insiders need to closely monitor subsequent developments.