As a regular reader of this newsletter, you may be aware that Congress has been engaged in intense debates over market structure legislation in recent months. However, the scope of crypto policy discussions extends far beyond this single issue, encompassing topics such as taxes, decentralized finance regulations, the upcoming midterm election, and the role of individual states, among many others. The Consensus Miami conference, scheduled to take place next month, will delve into each of these issues in considerable depth. This newsletter, State of Crypto, is dedicated to exploring the intersection of cryptocurrency and government.
To stay updated on future editions, click here to sign up. Conversations in Miami As noted in previous issues of this newsletter, policy changes related to digital assets have become increasingly significant. Last year, U.S. President Donald Trump signed the first substantial crypto-specific legislation, marking a milestone in the industry's development.
Regulators have since undergone a significant shift in their approach to enforcement actions. In recent months, Congress has focused on debating the finer points of issues like the treatment of stablecoin yield, rather than the broader outlines of a potential market structure bill. In essence, cryptocurrency has finally gained widespread recognition. This was also true last year, when the crypto industry celebrated its electoral victories in 2024, and the price of bitcoin soared to over $120,000, with legislation seeming imminent.
However, the situation has become somewhat more challenging this year, with crypto prices remaining largely stagnant amidst broader economic stresses, and time running out for Congress to pass market structure legislation in its current form. Despite these challenges, there are positive developments: regulators have begun proposing rules for stablecoin companies based on last year's GENIUS Act, lawmakers are seriously considering reforms to U.S. crypto tax policy, and the industry appears to have established itself to the point where it can no longer be ignored. So, what's next?
The industry continues to push for tax reform, including a de minimis exemption for crypto transactions, and hopes that the market structure bill will become law without imposing excessive burdens on the industry. Additionally, the industry is looking ahead to November, when the U.S. will elect a new Congress. We will be exploring these topics in more detail next month at Consensus Miami, our annual event that brings together a wide range of participants.
The conference will feature leading lawmakers, including Senators Kirsten Gillibrand and Ashley Moody, regulators such as 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 reviving 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 facing lawmakers, regulators, compliance officers, and industry builders, including whether and how decentralized finance can comply with anti-money laundering rules, how to navigate taxes in the new 1099-DA era, the implications of the Clarity Act, and how individual states are approaching this sector. We will have a series of sessions focused on the 2026 midterm election, including the crypto industry's engagement with the election and what to expect next year when the new Congress takes office. Throughout the summit, 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 right now: prediction markets.
Are they merely a form of gambling, or do they represent a novel financial instrument? And who should be responsible for regulating these products? These questions are likely to eventually be decided by the U.S.
Supreme Court, but we will preview the arguments for you on May 7. Feel free to join us (a discount code is available 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 you'd like to share, please don't hesitate 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.