The Senate rejected cloture on the Clarity Act by 49 votes to 50, short of the 60 needed to advance the crypto market-structure bill. Cynthia Lummis, the bill's chief author, had said earlier, "It's over." Bitcoin fell to $75,960, down 4% and its lowest level since August 21, while Ethereum, Solana and XRP also declined. The vote was on whether to take up the bill, not final passage, so lawmakers could still act this year, although the Senate's early-October break and November midterms leave limited time. Polymarket put the odds of passage in 2026 at 5%. Negotiations broke down over ethics provisions after Republicans added state attorney general enforcement and divestment requirements to Sunday's draft, while Democrats said the provisions did not cover the first family. Susan Collins was the only Republican identified as voting no. Crypto lobby group Stand With Crypto said it will include senators' votes in public ratings ahead of November and urged crypto voters to respond at the ballot box. Despite the legislative setback, the source says the SEC and CFTC are already moving through guidance and existing authority: CFTC staff are writing rules, the SEC has proposed allowing blockchains to serve as official stock ownership records, and the CFTC moved to dismiss CME's lawsuit over perpetual futures. Coinbase also filed to offer single-stock perpetual futures in the U.S. The market reaction included nearly 9% declines for Coinbase and 9.4% for Circle, while Bitcoin ETF outflows reached $450 million and Ether ETF outflows totaled $142 million on Tuesday. Other developments included Circle's Arc mainnet launch with more than 100 applications, X's U.S. Cashtag Partner Program, Deutsche Bank's planned institutional crypto custody service, and Payward's plan to bring permissioned Hyperliquid markets to U.S. clients. The FOMC meeting and a potential rate hike remained an additional market risk.