As subscribers to this newsletter are likely aware, the US Congress has been engaged in discussions on market structure legislation over the past few months. However, the scope of crypto policy discussions extends far beyond this single issue, encompassing topics such as taxes, regulations for decentralized finance, the upcoming midterm elections, and state-level initiatives.
CoinDesk's Consensus Miami conference, scheduled to take place next month, will delve into each of these subjects in greater depth. You are reading State of Crypto, a CoinDesk newsletter that examines the intersection of cryptocurrency and government.
To receive future editions, click here to sign up. Conversations in Miami This newsletter has previously noted the significance of policy changes related to digital assets.
Last year, US President Donald Trump signed the first substantial piece of legislation specifically addressing crypto. Regulators have also shifted their approach to enforcement actions. While Congress has been debating the finer points of issues like stablecoin yield treatment, the broader contours of a potential market structure bill remain unclear. In essence, the crypto industry has established itself as a major player.
Although this was also true last year, the crypto industry experienced significant electoral wins in 2024, with bitcoin's price soaring to over $120,000 and legislation appearing imminent. This year, however, crypto prices have been largely stagnant due to broader economic stresses, 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 US 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 is still seeking tax reform, including a de minimis exemption for crypto transactions, and hoping that the market structure bill will be passed 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 further at Consensus Miami, our annual event that brings together key stakeholders 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 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 individuals interested in discussing the election or the broader policy landscape.
Furthermore, we are reintroducing the Policy & Regulation Summit: a dedicated day and stage focused on 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 what the Clarity Act entails.
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 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 may eventually be addressed by the US Supreme Court, but we will preview the arguments for you on May 7.
You can attend the event using a discount code available in the link, and we look forward to seeing you there. This week Tuesday If you have thoughts or questions about what I should discuss next week, or any other feedback you'd like to share, 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.