Time's Running Out for Crypto Clarity

The crypto market structure bill has seen little public progress over the past month, and with time ticking away, its prospects for passage are dwindling. This newsletter, State of Crypto, explores the intersection of cryptocurrency and government - sign up for future editions here. The narrative is clear: the bill is unlikely to pass this month, and the clock is ticking. Much of the guidance around market structure issues is temporary, and without the Clarity Act, the industry risks revisiting the same conversations in the future. Memorial Day, May 25, is seen as a deadline for legislation to advance if it's to have a chance at passage before the election. Lawmakers will soon turn their attention to campaigns, leaving little time for crypto legislation. Before Congress departs, it must address funding for the Department of Homeland Security and the potential appointment of Kevin Warsh as Fed chair. The crypto industry is pushing for the 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 revote on the bill. Congressman French Hill believes the Senate can find common ground, given the House's work on the issue. The topic will be discussed at Consensus Miami next month. For feedback or questions, email nik@coindesk.com or join the conversation on Telegram.