Markets are pricing in Congressional dysfunction as FISA Section 702 faces Thursday's midnight expiration deadline. The House passed a three-year extension, but Senate Majority Leader John Thune called the bill "very, very hard" to pass due to an attached central bank digital currency ban that's a "poison pill" in the upper chamber.

With the surveillance program set to expire at midnight Thursday, traders have abandoned bets on longer-term extensions. Markets for 90+ day authorization collapsed from 65¢ to 7¢, while 2-year odds fell from 48¢ to 3¢. The Senate will likely pass a short-term clean extension and send it back to the House, extending the legislative stalemate on privacy reforms that have divided both parties for two decades.