Time Is Running Out for Crypto Clarity

The crypto market structure bill has seen little public progress over the past month, and with time ticking away, its prospects for passage are dwindling. This is State of Crypto, a newsletter from CoinDesk that explores the intersection of cryptocurrency and government - sign up for future editions here. The narrative suggests we won't see the crypto market structure bill this month, but this doesn't mark the end of the process. However, we're approaching a critical timeline that could lead to increased uncertainty. Much of the recent activity around market structure issues, such as statements from the Securities and Exchange Commission staff, lacks permanence. The SEC has time to develop rules that will undergo a notice-and-comment period, but this will take time. The market structure legislation aims to cement crypto industry goals and regulations into law, making it more difficult for future administrations to reverse these rules. Without the Clarity Act, it's possible that we'll be having this same conversation in a few years. Memorial Day, May 25, has been seen as a deadline for legislation to advance if it's to have a chance at passage before the election. As summer approaches, lawmakers will be leaving town to focus on their campaigns, leaving little time for a crypto bill. Before Congress leaves, it will need to address a bill to fund the Department of Homeland Security and consider Kevin Warsh's potential appointment as the next Fed chair. More than 100 industry players have signed an open letter urging a markup hearing in the Senate Banking Committee, which would be the first step towards overall passage. However, it's unclear how close the committee is to moving forward, with stablecoin yield dominating the conversation and other issues remaining unresolved. Even when these issues are resolved, the House will need to vote again on the bill. Congressman French Hill, who chairs the House Financial Services Committee, believes that many of the outstanding issues around sales practices for stablecoins and decentralized finance have already been addressed by the House in its version of the bill, which should facilitate common ground in the Senate.