Time's Running Out for Clarity on Crypto Legislation

The crypto market structure bill has seen little public progress over the past month, and with the clock ticking, its prospects for passage are dwindling. This is State of Crypto, a newsletter from CoinDesk that explores the intersection of cryptocurrency and government - click here to subscribe. The narrative is clear: the bill won't be passed this month, and the timeline is getting increasingly tight. Much of the recent activity around market structure issues, such as statements from the Securities and Exchange Commission, is not permanent and can be revisited. 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 reverse these rules. Without the Clarity Act, it's possible that we'll be having this same conversation in a few years. Memorial Day, just a month away, has been seen as a deadline for legislation to advance if it's to have a chance at passing before the election. As summer approaches, lawmakers will be distracted by their campaigns and won't have time to focus on 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 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 issues like stablecoin yield and decentralized finance still unresolved. Even when these issues are resolved, the House will need to vote again on the bill. Congressman French Hill, who chairs the House Financial Services Committee, believes that many of the outstanding issues have already been addressed by the House in its version of the bill, and the Senate should be able to find common ground. The conversation will continue at Consensus Miami next month. For feedback or suggestions, email nik@coindesk.com or join the conversation on Telegram.