Time's Running Out for Crypto Clarity

The crypto market structure bill has seen little public progress over the past month. While predicting the bill's outcome is challenging, it's clear that time is running out for its passage. The State of Crypto newsletter explores the intersection of cryptocurrency and government. To stay updated, sign up for future editions. The crypto market structure bill is unlikely to be passed this month, but this doesn't mark the end of the process. However, the timeline is becoming increasingly tight. Much of the recent activity around 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 the same conversation will be had in a few years. Memorial Day, May 25, has been seen as a deadline for legislation to advance if it is to have a chance at passage before the election. As summer approaches, lawmakers will leave 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. 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. Even when outstanding issues are resolved, the House will need to vote again on the bill. Congressman French Hill believes that many of the 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.