The crypto industry heads into September with its biggest legislative bet hanging in the balance, and little confidence the proposed bill will make it past the finish line.

The looming vote on the crypto market structure bill known as the Clarity Act is shaping up as a critical test for an industry that’s spent years pushing Washington for clearer rules around digital assets. The bill would establish a framework for crypto, divide oversight between the Securities Exchange Commission and the Commodity Futures Trading Commission, set registration requirements and strengthen anti-money-laundering protections.

But despite efforts by crypto executives and President Donald Trump to excite investors and industry watchers about the possibility…