As subscribers to this newsletter are likely aware, the U.S. Congress has been engaged in discussions on market structure legislation over the past few months, but the scope of crypto policy discussions extends far beyond a 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, aims to delve into each of these topics 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 noted previously, significant policy shifts regarding digital assets have become a reality. Last year, U.S. President Donald Trump signed the first substantial crypto-specific legislation, marking a turning point.
Regulators have since altered their approach to enforcement actions, and Congress has been debating the finer points of issues like stablecoin yield treatment. In essence, cryptocurrency has established itself as a major player. This was also true last year, when the crypto industry celebrated its electoral victories in 2024, with bitcoin's price soaring to over $120,000 and legislation appearing imminent. However, the landscape has changed somewhat 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 this, 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 November, when the U.S. will elect the next Congress.
We will be exploring these topics further at Consensus Miami, our annual event that brings together key stakeholders. You will have the opportunity to hear from prominent lawmakers, such as Senators Kirsten Gillibrand and Ashley Moody, regulators like CFTC Chairman Mike Selig and the White House's Patrick Witt, and Congressional staffers throughout the three-day conference. Congressman Steven Horsford, 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 reviving the Policy & Regulation Summit, dedicating an entire day and stage 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 how 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 the crypto industry's engagement 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. To conclude the Policy Summit and Consensus, we will host 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 ultimately be decided by the U.S. Supreme Court, but we will preview the arguments for you on May 7.
Join us (discount code available) 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.