Time's Running Out for Crypto Clarity

The crypto market structure bill has seen little public progress over the past month, and its prospects for passage are dwindling by the day. This is State of Crypto, a newsletter from CoinDesk that explores the intersection of cryptocurrency and government - sign up for future editions here. The narrative is clear: the bill's chances of passing this month are slim, and the clock is ticking. The reason this matters is that much of the guidance provided by the Securities and Exchange Commission is not permanent, and the SEC has time to establish rules through a notice-and-comment period. However, this process will take time, and without the Clarity Act, it's possible that the same conversations will be happening 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. Lawmakers will soon be leaving town to focus on their campaigns, and the crypto bill will likely take a backseat. Before Congress departs, 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 eagerly awaiting the passage of this bill, with over 100 companies signing an open letter urging a markup hearing in the Senate Banking Committee. Despite this, it's unclear how close the committee is to moving forward, and several outstanding issues remain unresolved. Even once these issues are addressed, the House will need to vote on the bill again. Congressman French Hill, chair of the House Financial Services Committee, believes that many of the outstanding issues have already been resolved by the House in its version of the bill, and the Senate should be able to find common ground. The discussion around crypto legislation will continue at Consensus Miami next month. For now, if you have thoughts or questions, feel free to email or join the conversation on Telegram.