As subscribers to this newsletter are aware, the US Congress has been debating market structure legislation for months, but the scope of crypto policy discussions extends far beyond this single issue, encompassing topics such as taxes, decentralized finance regulations, the upcoming midterm elections, and more. The Consensus Miami conference, scheduled to take place next month, will delve into each of these issues in depth. 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 previously noted in this newsletter, significant policy changes surrounding digital assets have become increasingly important. Last year, US President Donald Trump signed the first major crypto-specific legislation, and regulators have since altered their approach to enforcement actions.
In recent months, Congress has been debating the finer details of issues such as the treatment of stablecoin yield, rather than the broader aspects of market structure bills. In other words, the crypto industry has finally gained recognition. Although this was also true last year, the crypto industry, fresh from its electoral victories in 2024, celebrated as the price of bitcoin soared to over $120,000 and legislation seemed imminent. However, the situation has become less favorable 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.
On a positive note, regulators have begun proposing rules for stablecoin companies based on the GENIUS Act, lawmakers are considering reforms to US crypto tax policy, and the industry appears to have established itself to the point where it can no longer be dismissed. So, what's next?
The industry is still seeking 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 November, when the US will elect a new Congress.
We will be exploring these topics in more depth at Consensus Miami, our annual event that brings together key figures from the industry. 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 Patrick Witt, and Congressional staff members 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 policy landscape in general. Furthermore, we are reintroducing the Policy & Regulation Summit, a dedicated day and stage for 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 how states are approaching this sector. We will have a series of sessions focused on the 2026 midterm elections, 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 considered by the US 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 I 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