November 2025 Public Policy Update

The federal government reopened on November 13 after a record 43-day government shutdown — the longest in American history. Republican lawmakers in the Senate struck a deal with seven Democratic Senators and one Independent, who caucuses with the Democrats, on a continuing resolution (CR) to reopen the government (60 – 40), and the House swiftly passed it (222 - 209).

What Does the Continuing Resolution Do?

The CR funds the government through January 30, 2026, and includes full fiscal year (FY) 2026 spending bills for Agriculture-FDA (Ag-FDA), Military Construction-VA (MilCon-VA), and the legislative branch. In addition, the bill reverses reductions-in-force (RIFs) across federal agencies that occurred during the shutdown and provides back pay to furloughed workers. Regarding the most pressing item, the expiring Affordable Care Act (ACA) premium tax credits, a promise was made for the Senate to hold some form of vote on the issue.

Holiday Madness on Capitol Hill

For the first time in nearly two months, both chambers will be in session for the whole week ahead of Thanksgiving to address end-of-year priorities, as well as the backlog that grew drastically during the shutdown and the House’s prolonged recess. With three of the appropriations bills addressed, Congress now turns to the remaining nine; however, it is yet to be seen if a broader bipartisan deal on government funding can be reached.

Regulatory Backlog

With federal funding resumed, federal agencies are reactivating and digging out from the backlog that accumulated during the 43-day shutdown. The Securities and Exchange Commission’s (SEC) Division of Corporation Finance indicated in guidance that it received over 900 registration statements — filings used to register securities offerings such as initial public offerings (IPOs) — during the shutdown that it was catching up on. Similarly, work was delayed at the Internal Revenue Service (IRS) and the Department of Labor (DOL), including, for example, the IRS’s 2026 retirement plan limits, which were released the day the shutdown ended.

The shutdown is also expected to delay at least some of the package of rulemaking proposals for the DOL and SEC that were unveiled in September, including guidance on alternative assets in defined-contribution plans and updates to the fiduciary rule. Enforcement actions will also take some time to resume at their normal capacity.

Shutdown-related delays are on top of regulators’ need to think creatively as they focus on their priorities with fewer staff following workforce reductions earlier this year. Fred Reish, a member of CFP Board’s Public Policy Council, recently commented to InsuranceNewsNet about the reductions at the DOL: “I think it will have its intended effect in the sense that the agencies will have to rethink how to do things and examine whether they can be more efficient.”

Crypto Policy: Momentum Continues, Remains Complex

The Senate Agriculture Committee released a bipartisan discussion draft outlining how cryptocurrencies would be regulated. As a reminder, a portion of the digital asset space falls under the Agriculture Committee’s jurisdiction, as it has purview over the Commodity Futures Trading Commission (CFTC). The proposal, still very much in its early draft phase, builds upon the House-passed crypto market structure bill — the “CLARITY Act of 2025” (H.R. 3633) — and includes:

• A definition of digital commodities and establishment of a spot market digital commodity regulatory regime with the CFTC;
• Customer fund segregation requirements, conflict of interest safeguards, appropriate customer disclosure requirements and prohibitions on particular affiliated trading;
• A trading registration regime designed to facilitate liquid and resilient regulated markets while protecting retail participants;
• Requirements for the CFTC and the SEC to coordinate and collaborate on necessary interagency rulemakings;
• Protections for self-custody and innovative technology; and
• A new funding stream for the CFTC to stand up a spot market regulatory regime.

As we previously reported, in early September, Republicans on the Senate Banking, Housing and Urban Affairs Committee released an updated draft of their “Responsible Financial Innovation Act.” A group of pro-crypto Democratic senators followed soon thereafter by releasing a set of principles to guide negotiations, calling their proposal “a substantive road map” for bipartisan talks and an eventual compromise bill.

At the SEC, “Project Crypto” is moving forward. In a recent speech, SEC Chair Paul Atkins explained how the agency is thinking about digital assets. He said the SEC is exploring a more straightforward way to categorize different types of tokens, rather than labeling all of them as securities. Chair Atkins also shared that SEC staff are working on recommendations that could allow specific tokens to trade on platforms that aren’t regulated by the SEC, such as those overseen by the CFTC or by state regulators. Chair Atkins emphasized that the SEC’s role in overseeing capital formation should continue, but in a manner that, as he describes it, promotes innovation in the digital-asset space.

What’s Next for Capitol Hill?

Heading into the holiday season, Congress faces an unusually compressed schedule. Similarly, agencies will try to meet deadlines for their regulatory projects after the 43-day pause.

While a vote on ACA premium tax credits has been promised, there are no details yet on timing or legislative form. Tax policy could also come into play as Congress approaches the next funding deadline, leaving open the possibility of additional year-end actions that may affect financial planning conversations with your clients.