As subscribers to this newsletter are aware, Congress has been engaged in debates over market structure legislation for several months, but the scope of crypto policy discussions extends far beyond this single issue, encompassing topics such as taxation, regulations on decentralized finance, the upcoming midterm elections, and more. Next month, CoinDesk's Consensus Miami conference will delve into each of these topics in detail. You are reading State of Crypto, a CoinDesk newsletter examining 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 surrounding digital assets. Last year, U.S.
President Donald Trump signed the first substantial crypto-specific legislation. Regulators have shifted their approach to enforcement actions. Congress has been debating the finer points of issues like the treatment of stablecoin yield, rather than the broader aspects of a potential market structure bill or whether such a bill will be passed. In essence, cryptocurrency has become a mainstream topic.
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, things have taken a turn this year; 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, there is positive news: regulators have begun proposing rules for stablecoin companies based on last year's GENIUS Act, lawmakers are 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 continues to seek 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.
The industry is also looking ahead to November, when the U.S. will elect a new Congress. We will be exploring these topics further next month at Consensus Miami, our annual event that brings together key figures from the industry. You will hear from prominent lawmakers such as Senators Kirsten Gillibrand and Ashley Moody, regulators like CFTC Chairman Mike Selig and the White House's crypto point man, 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 those interested in discussing the election or the policy landscape in general.
Additionally, 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 how decentralized finance can comply with anti-money laundering rules, how to handle 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 to 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 U.S.
Supreme Court, but we will preview the arguments for you on May 7. 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, 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.