As subscribers to this newsletter are likely aware, the U.S. Congress has been engaged in discussions regarding 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 taxation, regulations for decentralized finance, the upcoming midterm elections, and the stance of various states on the matter. CoinDesk's Consensus conference in Miami, scheduled for 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. Conversations in Miami As previously noted in this newsletter, significant policy changes surrounding digital assets have become increasingly prominent.
Last year, U.S. President Donald Trump signed the first substantial piece of legislation specifically targeting crypto. Regulators have also shifted their approach to enforcement actions.
Recently, 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. In essence, cryptocurrency has established its presence. 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 landscape has become somewhat less favorable 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 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. Additionally, the industry is looking ahead to November, when the U.S. will elect the next Congress.
We will be exploring these topics in more depth next month at Consensus Miami, our annual event that brings together key figures 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 point man on crypto, 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 reintroducing 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 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 to expect next year when the new Congress takes over. 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 right now: 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 (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, 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!