Crypto Exchanges Left Hanging as Shutdown Sidelines CFTC

The Commodity Futures Trading Commission’s oversight of the fast-growing cryptocurrency market is on hiatus as the government shutdown lingers.

The halt comes at an inopportune time for virtual currency companies that want to evolve to become like more traditional financial players.

Crypto exchange startups looking to register as brokers with the CFTC may find their applications frozen. New rules on swaps trading platforms—which could impact how crypto exchanges are regulated further down the line—may also be delayed. The pause also increases the chances for virtual currency market manipulators to skirt the agency’s oversight.

“The shutdown is a very real threat ...