As subscribers to this newsletter are aware, Congress has been engaged in a heated debate over market structure legislation in recent months. However, discussions around crypto policy encompass a wide range of issues beyond this single topic, including taxation, regulations governing decentralized finance, the upcoming midterm elections, and much more. The Consensus Miami conference, scheduled to take place next month, will delve into each of these issues in greater detail. 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 previously in this newsletter, significant policy changes related to digital assets have become increasingly prominent. Last year, U.S. President Donald Trump signed the first substantial legislation specifically targeting the crypto industry.
Regulators have undergone a significant shift in their approach to enforcement actions. In recent months, Congress has been debating not only the broad outlines of potential market structure legislation but also the finer details of issues such as the treatment of stablecoin yields.
In essence, the crypto industry has established itself as a major player. This was also true last year, when 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 stresses and time running out for Congress to pass market structure legislation in its current form. Despite this, there are positive developments: regulators have begun proposing rules for stablecoin companies based on last year's GENIUS Act, lawmakers are seriously 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 is still seeking tax reforms, including a de minimis exemption for crypto transactions, and hopes that the market structure bill will become law without imposing an undue burden on 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 greater depth next month at Consensus Miami, our annual event that brings together virtually everyone in the industry. You will have the opportunity to hear from leading lawmakers such as Senators Kirsten Gillibrand and Ashley Moody, regulators like CFTC Chairman Mike Selig and the White House's point person on crypto, Patrick Witt, as well as Congressional staffers throughout the three-day conference.
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 policy landscape in general. Furthermore, we are bringing back the Policy & Regulation Summit: an entire day and stage dedicated to exploring key policy and regulatory issues in-depth.
The policy summit is designed to address some of the most pressing questions that lawmakers, regulators, compliance officers, and industry builders must answer, including whether and how 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 elections, including how the crypto industry is engaging with the election and what we can expect next year when the new Congress takes office. Along the way, 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 indeed the entire Consensus event, with a debate on one of the most pressing topics in the country: prediction markets.
Are they simply a form of gambling, or do they represent a novel financial instrument? And who should be responsible for regulating 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. Feel free to join us (discount code available 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 you would like to share, please do not hesitate 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