US Crypto Market Structure Bill 'Stumbles' on Ethics Clause...Can it achieve a dramatic turnaround within 12 days?

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The clock for processing the US crypto market structure bill before the midterm elections has rapidly accelerated after it was blocked in the Senate with a 49-50 vote.

Altcoin Daily, a YouTube channel specializing in cryptocurrency, reported in a video uploaded on September 16 (local time) that the US Senate's first cloture vote failed with 49 votes in favor and 50 against. 60 votes were needed to pass this procedure. While a simple majority of 51 votes is required for the final bill passage, the Senate could not even clear the first hurdle to move to the bill deliberation stage.

The core issue in the last-minute negotiations was the ethics clause. After the Republican Party unveiled the final bill draft two days before the recess ended, the Democratic Party proposed a counter-offer with revised ethics-related wording approximately 12 hours before the vote. Former federal prosecutor Renato Morati emphasized "ethics, ethics, ethics" as the key issue that could revive the bill. Altcoin Daily explained that some Republican senators also raised issues with stablecoin-related provisions and did not vote in favor.

The clash between the pro and con camps was intense just before the vote. John Thune, the US Senate Majority Whip, argued that the US must establish a digital asset regulatory framework to maintain its leadership in financial technology. The opposition argued that the bill could make it easier for terrorist organizations and criminal groups to use cryptocurrencies and expose Americans to the risk of "crypto-induced economic collapse." Scott Bessent, the US Treasury Secretary, urged the passage of the US crypto market structure bill, stating that it expands the Treasury Department's authority to respond to sanctions evasion.

The bill has not been completely scrapped. According to the video, the Senate could reschedule the vote as early as September 17, and there are about 12 session days left that can be used for processing before the midterm elections. The Senate session runs until October 2, and each failed vote procedure takes approximately two days. Coinbase (COIN) Chief Policy Officer explained that even after passing the first procedural vote, several votes would be needed for final passage, and the entire process could take about 10-11 days.

Separate from the bill vote, the US digital asset policy agenda continues. Bessent stated that he continues to pursue digital asset policies, including a strategic Bitcoin (BTC) reserve. Altcoin Daily predicted that the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) would accelerate the development of additional cryptocurrency guidelines. The video reported that the real-world asset tokenization market has grown 17.4 times in the past three years, reaching $46.4 billion, and no single issuer accounts for more than 10% of the total market.

[Article Key Summary]

-The US crypto market structure bill failed to secure the necessary 60 votes in the Senate's first procedural vote, with 49 in favor and 50 against.

-The Senate could revote as early as September 17, but the session days available for processing before the midterm elections have been reduced to about 12.

-While the ethics clause emerged as a key issue in the final stages, work on a strategic Bitcoin reserve and additional guidance from regulatory agencies is ongoing separately.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*