The change of the Speaker of the House of Representatives may bring uncertainty to the encryption industry.

Recently, there has been a major change in the American political landscape, as House Speaker Kevin McCarthy was removed from office, marking a first in American history. Subsequently, pro-encryption Republican Patrick McHenry temporarily took over the role of Speaker. This event could have far-reaching implications for the encryption industry.

Currently, the U.S. political scene faces two major unresolved issues: the selection of a new Speaker and whether it can continue to avoid a government shutdown after the temporary funding agreement expires on November 17. Both of these issues could impact the encryption industry.

In Washington, pro-encryption politicians are not common. Mike Henry, as one of the few lawmakers supporting the encryption industry, recently threatened to issue a subpoena regarding the communications between the Chairman of the U.S. Securities and Exchange Commission and a bankrupt encryption exchange. However, the position that Mike Henry currently holds as Chairman of the Financial Services Committee may also face changes.

A regulatory affairs expert pointed out that if McHenry is forced to assume the role of Speaker, he will have to give up the position of Chairman of the Financial Services Committee. This could result in the committee losing a supporter from the encryption industry, which in turn could affect the advancement of encryption legislation.

Another ally of McCarthy viewed as a potential successor, Tom Emmer, stated last week that he has no intention of seeking the Speaker position.

In addition to political changes, the government's potential shutdown crisis has also cast a shadow over the encryption market. The head of institutional research at a trading platform believes that the government shutdown could exacerbate market volatility in the short term. He stated that the turmoil in traditional risk assets could spill over into the encryption sector, but this impact may 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 government shutdown crisis has temporarily eased, it will face another deadline in 44 days, and these issues will continue to affect the market. Notably, the agreement reached last week means that the Federal Reserve will not be affected and will still be able to access key economic data.

However, the market still faces other adverse factors. Some analysts believe that the Federal Reserve may continue to raise interest rates at the meeting on November 1, which would lay the foundation for a market rebound before the end of the year. Currently, the market expects the possibility of an interest rate hike on November 1 to be around 20%.

The direct reason for McCarthy's removal was his last-minute push to pass a bill to avoid a government shutdown, which angered some of his Republican colleagues, especially the far-right members. The motion to vacate was introduced by Republican Matt Gaetz, who demanded that McCarthy disclose the details of the funding agreement for the Ukraine war reached with the government.

This series of political changes and potential economic risks will undoubtedly bring new challenges and opportunities to the encryption industry. Industry participants need to closely monitor developments in Washington, as well as the possible introduction of new policies and regulations.