Magotalk founder Mago stated that the clear bill for the crypto market did not receive the required sixty votes in the Senate on the day of the vote, while the House had already passed it in 2025. The Senate's blockage has disappointed the industry, likely due to ethical standards and stablecoin provisions. He emphasized that the industry cannot just wait for congressional legislation but should strive for clear rules from the SEC and CFTC, asserting that crypto will continue to develop.

The Senate's motion to end debate on the bill failed with forty-nine votes in favor and fifty votes against, falling eleven votes short of the sixty needed. This was not the final vote, but merely a decision on whether to open debate. Four Republican senators opposed it: Susan Collins, Josh Hawley, Jerry Moran, and Thom Tillis. After Tillis switched to oppose, he immediately called for reconsideration. No Democrats or independents supported it. Cynthia Lummis stated before the meeting that failure at this time would mean the end of this session.

The blockage aligns with Mago's judgment. Democrats are demanding stricter restrictions on public officials' crypto businesses, targeting approximately $1.4 billion in revenue disclosed from projects related to the president's family. The weekend text added prohibitions on issuing or endorsing tokens while in office, significant holdings disposal, and state attorney general prosecution rights, but it was still criticized for not mandating a complete divestiture. Banks are concerned that platform stablecoin rewards will siphon off deposits, and the text gives the Treasury Department the right to intervene. Sponsors claim to have made hundreds of concessions but still failed to secure a single Democratic vote.

Congress is about to recess to prepare for the midterm elections, and when the new session begins in January, the legislative clock resets. The stablecoin has the Genius bill; the market structure can only revert to the rule-making of two committees. Bitcoin has fallen to around $76,000, Coinbase is down over 8%, Robinhood is down over 3%, and Strategy is down about 5%, with reported liquidations exceeding $700 million. The prediction market has reduced the probability of the bill becoming law this year from about 29% to approximately 6.5%.

The bill was initially intended to separate the jurisdiction of securities and commodities, with the commodity side being somewhat more significant. Without codified law, listing, staking, and developer responsibilities continue to rely on law enforcement discretion. Mago has shifted the path from lobbying corridors to committee opinion letters, effectively acknowledging that the sixty votes have been locked by ethical provisions.

In market mechanisms, buyers are exchanges that need licensing certainty to expand their balance sheets, while sellers are the Senate minority that has written ethics and deposit protection as veto powers. This is driven by the electoral calendar. Funds are withdrawing from legislative premiums towards the rules that are about to be established by the two committees; the beneficiaries are issuers that already have stablecoin laws to rely on, while the pressured parties are intermediary stocks that treat the entire market structure as a listing story.

Source: Public Information