WASHINGTON – Crypto’s long march into mainstream finance took a step backwards on Sept 15 when the Senate failed to advance the Clarity Act, denying the industry a chance to turn its newfound influence in Washington into fresh rules that could outlast the current administration.

Crypto exchange Coinbase Global Inc closed 10 per cent lower, while stablecoin issuer Circle Internet Group Inc declined more than 11 per cent.

Bitcoin, the largest cryptocurrency, dropped as much as 5.3 per cent to below US$75,000 after the Bill failed in a procedural vote.

Odds for the Bill passing had plunged in recent months as key Democrats lined up against it, but its defeat hardly explains crypto’s broader malaise.

The euphoria around artificial…