The CLARITY Act failed to advance in the US Senate on Tuesday, September 15, dealing a major setback to the crypto industry’s biggest regulatory push in years.

Senators voted 49-50 on a procedural motion to move forward with the bill. It needed 60 votes. The vote was on whether the Senate should begin considering the legislation, rather than final passage.

So why did it fail?

1. Democrats Wanted Trump to Sell Large Crypto Holdings

This became the biggest disagreement in the final hours.

Republicans made a major concession before the vote. Their final bill required senior officials with a “significant financial interest” in certain crypto companies to either sell that interest or…