As this newsletter's readers are aware, the US Congress has been debating market structure legislation for several months. However, crypto policy discussions cover a wide range of issues beyond this single topic, including taxes, decentralized finance regulations, the upcoming midterm election, and more. Next month, CoinDesk's Consensus Miami conference 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 important.
Last year, US President Donald Trump signed the first substantial crypto-specific legislation, and regulators have completely revamped their approach to enforcement actions. Congress has been debating the finer points of issues such as stablecoin yield treatment, rather than the broader aspects of a market structure bill. In essence, cryptocurrency has become a mainstream entity. This was true last year, when the crypto industry, fresh from its electoral victories in 2024, celebrated as bitcoin's price soared to over $120,000 and legislation seemed imminent.
This year, however, the situation has become somewhat more challenging, with crypto prices remaining largely stagnant amidst broader economic stresses and time running out for Congress to pass market structure legislation in its current form. Despite this, there is some positive news: regulators have begun proposing rules for stablecoin companies based on last year's GENIUS Act, lawmakers are seriously considering reforms to US crypto tax policy, and the industry appears to have cemented itself to the point where it can no longer be dismissed.
So, what's next? The industry is still seeking tax reform, with a de minimis exemption for crypto transactions, hoping the market structure bill will become law without overly burdening the industry, and looking ahead to November, when the US 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 virtually everyone in the industry. You will hear from prominent 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, as well as Congressional staffers 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. Additionally, we are bringing back 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 builders must answer, including whether and how decentralized finance can comply with anti-money laundering rules, how to deal with taxes in the new 1099-DA era, what the Clarity Act entails, 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 we can expect next year when the new Congress takes over. Along the way, 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 are they a novel financial instrument? And who should regulate these products? These questions are likely to end up before the US Supreme Court, but we will preview the arguments for you on May 7.
Come join us (discount code 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 you would like to share, 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!