$35000 to $40,000. speakers what would you buy and why?

I am trying to walk the thin line of tranparency vs musicality.

Although a bit above your price range new, Joseph Audio Pearls excel at that balance of detail/musicality, throw off a large, holographic 3D soundstage, and disappear amazingly well as a sound source and should work very well in a medium-sized room.  Here’s a very nice used pair in the gorgeous Sapele finish that’d likely save you big $$$ and be in your price range but are in Canada so would need to deal with exchange rate and shipping across the border but could be well worth it.

https://www.canuckaudiomart.com/details/650155621-joseph-audio-pearl-2020-graphene-almost-brand-new/

Past that, the ProAc K6 and Vandersteen Kento are also well worth a mention given what you’re looking for, and I like the Rockport and Sonus Faber choices as well.  Hope this helps, and best of luck. 

My advise to you would be for you to get out and actually audition as many speakers that you possibly can, as it’s the only way for you to know for certain which speakers are the right ones for you.  I’ve never owned speakers that I hadn’t auditioned first before purchasing.  At the end of the day, it’s the only way.  Happy listening.  

https://atc.audio/hi-fi/loudspeakers/tower-series/scm50aslt/
Plus ATC SCA 2 preamp and Townshend platforms.  No tube preamp is fast enough for actives at this level.  The platforms really do work.

Good hunting and have fun.

Of that list I would favor Rockport. I have heard the others except for Stenheim, and Rockport stands out. My exposure is via a couple visits to AXPONA, shows are  a great way to get a feel for the sound of a brand, followed by auditions of your favorites. Go to a show, you will come away with some favorites and a couple wildcards. 

@chuck 

I wish you would take some photos of your listening room and create a Virtual System here, I think members could refine their recommended options.

Joseph Audio immediately came out of the recesses of my mind. He still uses his modified versions of Richard Modaferri's patents.

here's a review of his work for McIntosh Tuners

https://www.stereophile.com/content/analog-matters-modafferi-mod

And a list of his Patents

https://patents.justia.com/inventor/richard-modafferi

I owned JSE Model 2's which were made by John Sollecito Engineering using two of Modafferi's patents.

https://holthill.com/products/jse-infinate-slope-model-two-extraordinary-speaker-system

Jeff Joseph was a salesman for Harveys when they were introduced, later he and Richard collaborated and Jeff started his own brand. 

Jeff's designs and quality are far better than anything JSE made.