Time's Running Out for Crypto Clarity

The crypto market structure bill has seen little progress over the past month, making it increasingly difficult to predict its passage. This newsletter, State of Crypto, explores the intersection of cryptocurrency and government - sign up for future editions here. 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 becoming increasingly tight, and the lack of permanent guidance from the Securities and Exchange Commission means that any rules will take time to implement. The market structure legislation aimed to solidify crypto industry goals and regulations into law, making it harder for future administrations to undo these rules. Without the Clarity Act, it's possible that the same conversations will be had in a few years. 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 leave town to focus on their campaigns, leaving little time for 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 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 still 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.