As subscribers to this newsletter are likely aware, Congress has been debating legislation related to market structure over the past few months, but discussions around crypto policy encompass a wide range of issues beyond this, including taxes, regulations on decentralized finance, the upcoming midterm election, and more. The Consensus Miami conference, hosted by CoinDesk next month, will delve into each of these topics in detail. This newsletter, State of Crypto, explores the intersection of cryptocurrency and government. To receive future editions, sign up here.
Conversations in Miami We've previously noted the significance of policy changes related to digital assets. Last year, U.S.
President Donald Trump signed the first major crypto-specific legislation. There has been a complete shift in the approach regulators take towards enforcement actions. Recently, Congress has been debating the finer points of issues like the treatment of stablecoin yield, rather than the broader aspects of a potential market structure bill. In essence, cryptocurrency has become a recognized entity.
This was also true last year, when the crypto industry celebrated its electoral victories in 2024 as the price of bitcoin soared to over $120,000 and legislation seemed imminent. However, things have taken a turn this year; crypto prices have been largely stagnant due to broader economic stresses, and time is running out for Congress to pass market structure legislation in its current form. Despite this, there are positive developments: regulators have started proposing rules for stablecoin companies based on last year's GENIUS Act, lawmakers are considering reforms to U.S.
crypto tax policy, and the industry appears to have solidified its presence to the point where it cannot be ignored. So, what's next? The industry continues to seek tax reform, including a de minimis exemption for crypto transactions, and hopes that the market structure bill will become law without overly burdening the industry.
Additionally, there's a focus on the upcoming November elections, when the U.S. will choose its next Congress. We will explore these topics further at Consensus Miami, our annual event that brings together key figures from the industry. The conference will feature leading lawmakers such as Senators Kirsten Gillibrand and Ashley Moody, regulators like CFTC Chairman Mike Selig and the White House's point man on crypto, Patrick Witt, as well as Congressional staffers over the course of three days.
Congressman Steven Horsford (D-Nev.), who recently introduced a new version of the Parity Act to address crypto taxation, will participate in a discussion about the bill. We will also host a meetup for those interested in discussing the election or the broader policy landscape.
Furthermore, we are reintroducing the Policy & Regulation Summit: an entire day and stage dedicated to in-depth exploration of key policy and regulatory issues. The policy summit is designed to address some of the most pressing questions that lawmakers, regulators, compliance officers, and builders must answer, including how decentralized finance can comply with anti-money laundering rules, how to handle taxes in the new 1099-DA era, the implications of the Clarity Act, and how states are approaching this sector. We will have a series of 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 office.
Throughout the event, we will hear from individuals deeply involved 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, among many others. We will conclude the Policy Summit, and Consensus as a whole, with a debate on one of the most significant topics in the country: prediction markets.
Are they merely a form of gambling, or do they represent a novel financial instrument? And who should regulate these products? These questions are likely to be addressed by the U.S.
Supreme Court, but we will preview the arguments for you on May 7. Join us (use the discount code in the link) and say hello.
This week Tuesday If you have thoughts or questions about what we should discuss next week, or any other feedback, feel free to email me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social. You can also join the group conversation on Telegram. See you all next week.