As subscribers to this newsletter are aware, the US Congress has been debating legislation related to market structure over the past few months. However, discussions around crypto policy encompass a wide range of issues, including taxes, regulations for decentralized finance, the upcoming midterm election, and more. The Consensus Miami conference, scheduled to take place next month, will delve into each of these topics in detail. This newsletter, State of Crypto, examines the intersection of cryptocurrency and government.
To receive future editions, click here to sign up. Conversations in Miami As noted in previous issues, significant policy changes have been occurring in the digital asset space. Last year, former US President Donald Trump signed the first substantial crypto-specific legislation. Regulators have also shifted their approach to enforcement actions.
While Congress has been debating the specifics of market structure legislation, such as the treatment of stablecoin yield, the broader crypto industry has become increasingly prominent. In other words, cryptocurrency has become a established player.
Although the crypto industry experienced significant electoral wins in 2024 and saw a surge in bitcoin's price, this year has been marked by stagnant crypto prices and economic stress. Despite this, regulators have begun proposing rules for stablecoin companies based on the GENIUS Act, and lawmakers are considering reforms to US crypto tax policy. The industry is seeking tax reform, including a de minimis exemption for crypto transactions, and is hoping that the market structure bill will become law without overly burdening the industry. The next steps for the industry will be discussed at Consensus Miami, a three-day conference that brings together key stakeholders.
Attendees will hear from leading lawmakers, regulators, and Congressional staffers, including Senators Kirsten Gillibrand and Ashley Moody, CFTC Chairman Mike Selig, and Patrick Witt, the White House point man on crypto. The conference will also feature a meetup for those interested in discussing the election and the policy landscape. Additionally, the Policy & Regulation Summit will be held, which is an entire day dedicated to exploring key policy and regulatory issues in-depth.
The policy summit will address questions such as whether decentralized finance can comply with anti-money laundering rules, how to deal with taxes in the new 1099-DA era, and what the Clarity Act means for the industry. There will also be sessions focused on the 2026 midterm election, including how the crypto industry is engaging with the election and what to expect next year when the new Congress takes over.
The summit will feature speakers deeply embedded in the policymaking process, such as SEC Crypto Task Force chief Taylor Lindman, former IRS officials Seth Wilks and Raj Mukherjee, and the National Futures Association's Lucy Hynes. The Policy Summit will conclude with a debate on prediction markets, which are likely to be a major topic in the country.
The debate will explore whether prediction markets are a form of gambling or a novel financial instrument, and who should regulate these products. This week Tuesday If you have any thoughts or questions about what to discuss next week, or any other feedback, please email nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social. You can also join the group conversation on Telegram. See you next week!