As subscribers to this newsletter are aware, Congress has been engaged in a months-long debate over market structure legislation. However, 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 more. The Consensus Miami conference, scheduled to take place next month, will delve into each of these issues in depth. 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 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 crypto-specific legislation, marking a shift in the regulatory approach to enforcement actions.
Congress has been debating the finer details of issues like stablecoin yield treatment, rather than the broader aspects of market structure bills. In essence, cryptocurrency has become a mainstream entity. Although this was also true last year, the crypto industry took a victory lap following its electoral wins in 2024, with bitcoin's price soaring to over $120,000 and legislation seeming imminent.
This year, however, crypto prices have stagnated amidst broader economic stresses, and time is running out for Congress to pass market structure legislation in its current form. Despite this, regulators have begun proposing rules for stablecoin companies based on the GENIUS Act, lawmakers are considering reforms to U.S. crypto tax policy, and the industry has cemented its position to the point where it can no longer be dismissed.
So, what's next? The industry is still seeking tax reform, including a de minimis exemption for crypto transactions, and hoping 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 at Consensus Miami, our annual event that brings together key stakeholders. The conference will feature leading 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.
Congressional staffers will also be in attendance 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.
Furthermore, we are bringing back the Policy & Regulation Summit, a dedicated day and stage for exploring key policy and regulatory issues in-depth. The policy summit is designed to address some of the most pressing questions facing lawmakers, regulators, compliance officers, and industry builders, including how decentralized finance can comply with anti-money laundering rules, how to navigate taxes in the new 1099-DA era, and what the Clarity Act entails. We will also examine how states are approaching the crypto sector.
A series of sessions will focus on the 2026 midterm election, including the crypto industry's engagement with the election and what to expect next year when the new Congress takes office. Throughout the summit, 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 addressed by the U.S.
Supreme Court, but we will preview the arguments for you on May 7. Join us (discount code available) 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!