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. This is State of Crypto, a CoinDesk newsletter exploring the intersection of cryptocurrency and government. To receive future editions, click here to sign up. 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 approaching a critical point that will likely increase uncertainty. Much of the recent activity around market structure issues, such as SEC staff statements, lacks permanence. The SEC has time to develop rules 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 reverse 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 and have a chance at passage before the election. As summer approaches, lawmakers will focus on their campaigns, leaving little time for a crypto bill. Before Congress leaves, they 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, with stablecoin yield dominating the conversation and other issues remaining unresolved. Even when these issues are resolved, the House will need to vote again on the bill. Congressman French Hill believes that many outstanding issues have already 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.