CRYPTO'S BIG RULEBOOK DIES AT 50 VOTES

🔴 50 votes for, 49 against. The crypto industry needed 60.

CNBC reports the Senate on Tuesday blocked the Clarity Act from advancing, stalling the industry's push for a comprehensive market structure framework after months of negotiations.

The bill would have divided oversight between the SEC and the CFTC, set registration requirements and strengthened protections against money laundering.

Republican leaders released a revised version Sunday, adding ethics restrictions aimed at Democratic concerns about public officials profiting from crypto ventures. It wasn't enough.

Sen. Ruben Gallego, a key Democratic negotiator, said the earlier ethics compromise "would have bought a lot of Dem votes."

📉 The market reacted immediately. Bitcoin was last down 3%. Coinbase slid 8%. Circle fell 10%, amid a broader sell-off.

Sen. Cynthia Lummis, the industry's top Senate champion, told reporters before the vote that "it's over" if the motion failed.

Timing makes a revival hard. Midterms are seven weeks out. Senators leave Washington in early October and don't return until after the election. The House recesses at the end of this week.

So the action moves to the regulators. CNBC notes the SEC has proposed letting startups sell as much as $75 million of tokens without registering, and the CFTC recently approved the first bitcoin perpetual futures in the U.S.

If Congress never passes a crypto framework, does the industry actually need one?

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