Time's Running Out for Clarity on Crypto

The crypto market structure bill has seen little public progress over the past month, making its prognosis challenging. However, it's evident that time is running out for 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. The clock is ticking, and the timeline will likely lead to increased uncertainty. Much of the recent activity surrounding market structure issues, such as SEC staff statements, lacks permanence. The SEC has time to establish rules through a notice-and-comment period, but this will take time. The market structure legislation aimed to solidify crypto industry goals and regulations into law, making it more difficult for future administrations to undo these rules. Without the Clarity Act, it's possible that the same conversation will resurface in a few years. Memorial Day, May 25, has been considered 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. According to Congressman French Hill, many outstanding issues around sales practices for stablecoins and decentralized finance have already been addressed by the House in its version of the bill, making it easier for the Senate to find common ground. The topic will be discussed further at Consensus Miami next month. For feedback or suggestions on future topics, email nik@coindesk.com or join the conversation on Telegram.