Time's Running Out for Crypto Clarity

The crypto market structure bill has seen little public progress over the past month, and with time running out, it's becoming increasingly difficult to predict its passage. This newsletter, State of Crypto, explores the intersection of cryptocurrency and government - click here to sign up for future editions. The crypto market structure bill is unlikely to pass this month, but this doesn't mark the end of the process. However, the clock is ticking, and the timeline is about to get even more challenging. Much of the recent activity surrounding market structure issues, such as statements from the Securities and Exchange Commission staff, is not permanent guidance. The SEC has time to develop rules that will go through a notice-and-comment period, but this will take time. The market structure legislation aimed to cement crypto industry goals and regulations into law, making it more difficult for future administrations to undo these rules. Without the Clarity Act, it's possible that we'll be having the same conversation in a few years. Memorial Day, just a month away, has been seen as a 'drop-dead' date 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 departs, they'll need to address a bill to fund the Department of Homeland Security and consider Kevin Warsh's potential appointment as the next Fed chair. The crypto industry is eager for this bill, with over 100 companies signing an open letter urging a markup hearing in the Senate Banking Committee. However, it's unclear how close the committee is to moving forward, with stablecoin yield dominating the conversation and other issues still unresolved. Even when these issues are resolved, the House will need to vote again on the bill. Congressman French Hill, chair of the House Financial Services Committee, believes that many outstanding issues around sales practices for stablecoins and decentralized finance have already been addressed by the House in its version of the bill, making it easier for the Senate to find common ground.