The Senate’s failure to advance the Clarity Act on Tuesday was a major setback for the crypto industry’s push to lock market structure rules into law, but the reaction from industry leaders was notably measured.

Crypto executives said the vote does not unwind the regulatory progress already underway at the SEC and CFTC, nor is it likely to stop banks, asset managers and crypto firms from continuing to build.

What it does leave unresolved is the question of durability: agency rules can change with a new administration, while legislation would have given the industry a more permanent framework.

For some, that means the U.S. now risks extending the uncertainty that has pushed companies to look toward jurisdictions such as Europe, where…