The crypto sector has just hit its first major obstacle under Donald Trump’s second term after enjoying a period of unprecedented support in Washington. Senate Democrats recently blocked a crypto measure that had strong backing from the industry, signaling a shift in momentum on Capitol Hill. While the proposal isn’t entirely off the table, its path forward is uncertain, especially as political divisions deepen.

Companies like Canaan Inc. (NASDAQ: CAN) will be watching to see how the lawmakers move to eventually pass the regulatory system that the industry has been…

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