Time's Running Out for Crypto Clarity

The cryptocurrency market structure bill has seen little public progress over the past month, and with time ticking away, its prospects for passage are dwindling. This is State of Crypto, a CoinDesk newsletter examining the intersection of cryptocurrency and government - sign up for future editions here. The crypto market structure bill's lack of movement is concerning, as much of the recent guidance from the Securities and Exchange Commission is not permanent. Without the Clarity Act, the crypto industry's goals and regulations may not be cemented into law, leaving them vulnerable to reversal by future administrations. Memorial Day, just a month away, is seen as a deadline for legislation to advance if it is to have any chance of passing before the election. Before Congress breaks for the summer, they 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 eagerly awaiting the passage of this bill, with over 100 companies signing an open letter urging the Senate Banking Committee to hold a markup hearing. However, it is unclear how close the committee is to moving forward, with outstanding issues such as stablecoin yield and decentralized finance still unresolved. Even once these issues are resolved, the House will need to vote again on the bill. Congressman French Hill, chair of 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 that the Senate should be able to find common ground. The topic will be discussed further at Consensus Miami next month. For thoughts, questions, or feedback, email nik@coindesk.com or join the conversation on Telegram.