Good morning. In a setback for the crypto industry, a bill that would have helped usher digital assets into the mainstream financial system failed to advance in Congress.

Known as the Clarity Act, the measure fell short Tuesday in a procedural vote requiring the approval of 60 senators.

• A year in the making: The legislation, which was expected to establish the first comprehensive regulatory framework for digital assets, was under negotiation for more than a year. Democrats and Republicans fought over whether the measure should restrict President Trump from profiting off the industry. Crypto and banking executives (and their allies) meanwhile dug in on whether digital-asset platforms such as Coinbase could offer tokens with interest-like rewards that resembled bank deposits.

• Banking industry concerns: Banking groups argued that the recurring payouts could drain deposits from community banks and threaten regional lending. The vote also came amid heightened scrutiny over Trump’s crypto earnings and Democratic demands for stricter rules regarding his digital-asset ventures.

• Dead forever? On Sunday, Republicans had offered what they called the “last, best and final offer”: a revised draft of the bill they thought addressed many of the Democrats’ concerns. After the vote Tuesday, it was unclear whether Republicans would engage in further negotiations or be able muster support for another vote on the bill.

DOJ says Binance customers used crypto exchange to funnel Iran oil money.

The U.S. Justice Department said several companies used crypto exchange Binance to relay payments for black-market Iranian oil from Chinese buyers, as part of a scheme to finance Iran’s military in violation of sanctions.

Federal prosecutors in Manhattan disclosed Binance’s role late Monday in a forfeiture complaint to seize $61 million of cryptocurrency related to Iran oil proceeds. Prosecutors said in total around $1.5 billion was sent to Iran through a series of interrelated digital wallets.

A Binance spokesperson said the civil-forfeiture case isn’t against Binance and doesn’t allege any wrongdoing by the exchange.

• Crypto Exchange That Was Hub for Illicit Iran Cash Closes Suddenly

Maduro ally Saab to forfeit $195 million in money-laundering plea.

A top ally of former Venezuelan President Nicolás Maduro pleaded guilty to a money-laundering charge and agreed to forfeit $195 million in a Miami federal court, Risk Journal reports (free link).

Colombian businessman Alex Saab Morán had approval and protection from the highest-ranking authorities in the Venezuelan government, including a former governor and an individual described as “Government Official 1A,” according to a filing entered Tuesday in the U.S. District Court for the Southern District of Florida.

• Two former Robinhood employees face fraud charges for allegedly trading using confidential information on the trading platform’s cryptocurrency plans.

• Federal regulators are pressing Tesla on whether its steering wheel-free Cybercab may have a way for humans to drive it after all.

• The European Commission has updated its export control list to include certain components of computer chips and chipmaking equipment, and in an effort to promote consistent regulation across European Union member states.

• The European Union’s top official said Brussels has plans to stop children under 13 from accessing social networks and restrict what teenagers can do online.

The average price of a gallon of diesel in the U.S. Tuesday, a record high.

U.S. pressures Mexico to box out China’s AI hardware exports.

The U.S. government is pressuring Mexican officials to accept new rules for exports of artificial-intelligence hardware to prevent Chinese companies and other foreign firms from circumventing tariffs, said people familiar with the negotiations.

The proposal would limit the amount of components that come from outside North America in the production of AI hardware, a set of products including chips and servers that has quickly become Mexico’s top export to the U.S., surpassing automobiles this year.

This year’s El Niño is expected to be the most powerful yet.

This year’s El Niño is heating up to be one of the strongest on record.

The global weather disrupter has already stoked wildfires in Asia, hurricanes in the Pacific and fishery closures in South America. The worst may be yet to come.

• At least two foreign tankers bound for American shores were targeted in cyberattacks now under U.S. government investigation, fueling concerns that Iran or other adversaries are seeking to widen the Middle East conflict, according to U.S. officials.

• Amazon Web Services said Tuesday it is unable to restore access to some customer data hosted in Persian Gulf data centers that were struck by Iranian drones in the spring.

• More companies are turning to artificial intelligence to battle AI-powered hackers, which is creating demand for more seasoned workers as entry-level job seekers are left in the cold.

• Some of China’s scrappiest hackers-for-hire are evolving into full-service private intelligence agencies, exploiting advances in artificial intelligence and other technologies to put stolen secrets of foreign governments at the fingertips of the country’s security agencies.

• Around 75% of all trans-Atlantic subsea cables pass through or near the waters around Ireland, where a growing number of suspected Russian shadow fleet vessels now regularly sail. Yet, Ireland’s defenses to protect this stretch of the North Atlantic are scant.

• Pentagon leaders said this week the military has deployed weapons in space, acknowledging for the first time a closely held government secret.