As this newsletter's readers may know, the US Congress has been debating market structure legislation for several months, but crypto policy discussions encompass a wide range of issues beyond this single topic, including taxes, decentralized finance regulations, the upcoming midterm election, and more. The Consensus Miami conference, scheduled for next month, will delve into each of these issues in depth. This newsletter, State of Crypto, explores the intersection of cryptocurrency and government. To receive future editions, click here to sign up.
Conversations in Miami As noted in previous issues, significant policy changes surrounding digital assets have become increasingly important. Last year, US President Donald Trump signed the first substantial crypto-specific legislation, marking a shift in regulators' approach to enforcement actions.
Congress has been debating the finer details of issues like stablecoin yield treatment, indicating that crypto has become a mainstream topic. In other words, the crypto industry has finally gained recognition. Although the industry experienced significant growth last year, with bitcoin's price soaring to over $120,000 and electoral wins in 2024, this year has seen stagnant crypto prices amid broader economic stresses, and time is running out for Congress to pass market structure legislation in its current form.
Nevertheless, 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 has cemented its presence to the point where it cannot be dismissed. So, what's next? The industry is still seeking tax reform, with a de minimis exemption for crypto transactions, hoping the market structure bill will become law without overly burdening the industry, and looking ahead to November, when the US will elect the next Congress. We will be exploring these topics in more depth 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. 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 bringing back 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 builders, including whether decentralized finance can comply with anti-money laundering rules, how to deal with taxes in the new 1099-DA era, and what the Clarity Act entails. 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 over. 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 are they a novel financial instrument? And who should regulate these products? These questions may eventually be addressed by the US Supreme Court, but we will preview the arguments for you on May 7.
Join us (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!