As subscribers to this newsletter are aware, Congress has been debating market structure legislation over the past few months, but discussions around crypto policy encompass a much broader range of issues, 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 topics in depth.
You're reading State of Crypto, a CoinDesk newsletter that explores the intersection of cryptocurrency and government. To receive future editions, click here to sign up. Conversations in Miami This newsletter has previously highlighted the significance of policy changes related to digital assets. Last year, U.S.
President Donald Trump signed the first major crypto-specific legislation, and regulators have since shifted their approach to enforcement actions. Congress has been debating the finer details of issues like stablecoin yield treatment, rather than the broader aspects of a potential market structure bill. In essence, cryptocurrency has made significant strides. 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 somewhat more challenging this year, with crypto prices remaining largely stagnant amid broader economic pressures, and time is 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 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 U.S. will elect a new 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 crypto expert 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 bringing back the Policy & Regulation Summit, which will dedicate 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 whether 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 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 conference, 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 U.S. Supreme Court, but we will preview the arguments for you on May 7. Please 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, please 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.