Time's Running Out for Crypto Clarity

The crypto market structure bill has seen minimal public progress over the past month. While predicting the bill's outcome is challenging, it's clear that time is of the essence for its passage. The intersection of cryptocurrency and government is a key focus of the State of Crypto newsletter - 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 timeline is becoming increasingly tight. 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 undergo 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 occur in a few years. Memorial Day, May 25, has been seen as a 'drop-dead' date for legislation to advance since last December. As summer approaches, lawmakers will focus on their campaigns, leaving little time for a crypto bill. Before Congress departs, it will 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 issues around sales practices for stablecoins and decentralized finance have been addressed by the House in its version of the bill, making it easier for the Senate to find common ground. The discussion will continue at Consensus Miami next month. For feedback or suggestions on future topics, email nik@coindesk.com or join the conversation on Telegram.