In a major regulatory development, a key cryptocurrency bill collapsed in the US Senate on Tuesday, marking a significant blow to hopes of establishing the country’s first federal regulatory framework for digital assets.The Digital Asset Market Clarity Act failed a procedural vote that would have sent it to the Senate floor for debate. Lawmakers voted 50 to 49 against advancing the measure, falling short of the 60 votes needed under Senate rules. Four Republicans, Jerry Moran, Rand Paul, Josh Hawley and Thom Tillis, sided with Democrats in rejecting the bill.The legislation, had it succeeded, would have given the United States its first comprehensive rulebook governing digital assets at the federal level. Its collapse leaves the regulatory boundary between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) unsettled, with no clear resolution in sight.Few opportunities remain to revive the bill this year. Congress has fewer than 36 working days left before 2027, when a new session convenes following the outcome of November’s midterm elections.Tuesday’s defeat was not the bill’s first brush with trouble. It had already stalled ahead of Congress’ August recess over ethics provisions meant to prevent government officials and their families from issuing or profiting from digital assets while holding office. President Trump had agreed to most elements of a bipartisan plan to strengthen those safeguards before the vote, yet that compromise failed to secure enough support. Adding to the pressure, 18 state attorneys general came out against the bill just a day before the vote, arguing it would limit states’ power to pursue crypto-related fraud and misconduct.Community banks proved to be another source of resistance, objecting strongly to provisions that would have allowed rewards to be paid on stablecoin holdings. Their concern was that such incentives could draw deposits away from traditional banks, reducing the capital available for loans to farmers and small businesses. Despite the setback, the crypto industry had invested heavily in pushing the bill through, spending hundreds of millions of dollars in the process. Trump remained one of its strongest advocates throughout, having previously disclosed more than $1.4 billion in earnings from his family’s crypto ventures and having styled himself a “crypto president” during his 2024 run for office.BitPay Card vs Bitrefill CardSmithBot AI Crypto Trading: Live Test ResultsSouth Korean Province’s Digital Tax Tracking Nets $4.6M from Crypto AccountsCrypto Reflections: What are Reflection Tokens and How do they work?