Readers of this newsletter are likely aware that Congress has been debating market structure legislation for the past few months. However, crypto policy discussions encompass a wide range of issues beyond this, including taxes, decentralized finance regulations, the upcoming midterm election, and state-level developments. The Consensus Miami conference, scheduled for 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, click here to sign up. Miami Discussions As previously noted in this newsletter, significant policy changes surrounding digital assets have been underway.
Last year, U.S. President Donald Trump signed the first substantial crypto-specific legislation, marking a shift in the regulatory landscape.
Regulators have since altered their enforcement approach, and Congress has been debating the finer points of issues such as stablecoin yield treatment. In essence, the crypto industry has established itself as a major player. This was evident last year, following the industry's electoral wins in 2024, when bitcoin's price surged to over $120,000, and legislation seemed imminent. Although the situation has become somewhat more challenging this year, with crypto prices stagnating amidst broader economic stresses and time running out for Congress to pass market structure legislation, there are still positive developments.
Regulators have begun proposing rules for stablecoin companies based on the GENIUS Act, lawmakers are considering reforms to U.S. crypto tax policy, and the industry appears to have cemented its position to the point where it can no longer be dismissed. 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, the industry is looking ahead to the November elections, when the next Congress will be chosen. These threads will be picked up next month at Consensus Miami, our annual event that brings together key stakeholders.
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. Congressional staffers will also be in attendance throughout the three-day conference. 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.
A meetup for those interested in discussing the election or the policy landscape in general will also be hosted. We are also bringing back the Policy & Regulation Summit, an entire day dedicated to exploring key policy and regulatory issues in-depth.
The policy summit is designed to address some of the most pressing questions facing lawmakers, regulators, compliance officers, and industry builders, including whether decentralized finance can comply with anti-money laundering rules, how to navigate taxes in the new 1099-DA era, and what the Clarity Act entails. We will also examine how states are approaching this sector.
A series of sessions will focus on the 2026 midterm election, including the crypto industry's engagement with the election and what to expect when the new Congress takes office next year. 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. The Policy Summit, and Consensus as a whole, will conclude 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 may eventually be decided by the U.S. Supreme Court, but we will preview the arguments for you on May 7.
You can attend the event using a discount code found in the link and say hello. This Week Tuesday If you have thoughts or questions about what to discuss next week or any other feedback, feel free to email 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.