As this newsletter's readers are likely aware, the US Congress has been debating market structure legislation for 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 election, and numerous other concerns. The Consensus Miami conference, scheduled to take place next month, will delve into each of these issues in detail.
This newsletter, State of Crypto, examines the intersection of cryptocurrency and government. To receive future editions, click here to sign up. Discussions in Miami As noted previously in this newsletter, policy changes related to digital assets have become increasingly significant.
Last year, US President Donald Trump signed the first substantial crypto-specific legislation, and regulators have since shifted their approach to enforcement actions. In recent months, Congress has focused on debating the finer points of issues such as the treatment of stablecoin yield, rather than the broad outlines of a potential market structure bill.
In essence, the crypto industry has achieved a level of recognition and legitimacy. 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 amidst 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 US 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 continues to seek tax reform, including a de minimis exemption for crypto transactions, and hopes that the market structure bill will become law without imposing an excessive burden on the industry. Additionally, the industry is looking ahead to November, when the US will elect a new Congress.
We will be exploring these topics in more depth at Consensus Miami, our annual event that brings together virtually everyone in 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 crypto point man, Patrick Witt, as well as Congressional staff members, 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 policy landscape in general. Furthermore, we are reviving 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 election, including how the crypto industry is engaging with the election and what we can 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. 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 US 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, please don't 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!