WASHINGTON—Legislation aimed at establishing a regulatory framework for U.S. dollar-pegged cryptocurrency tokens, known as stablecoins, encountered a setback on Thursday when it failed to pass a crucial vote in the U.S. Senate, Reuters reported.
The setback deals a significant blow to the crypto industry, which has long advocated for legislation to establish clear regulations for digital assets. The sector invested over $119 million supporting pro-crypto congressional candidates in last year’s elections and sought to frame the issue as a bipartisan priority, Reuters noted.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens, Reuters noted.
In a vote on Thursday, only 49 senators voted to advance the bill to a full vote, falling short of the 60 votes needed to formally end debate on the bill. Notably, two Republican senators - Senator Josh Hawley and Senator Rand Paul - voted alongside Democrats against moving forward with the bill, Reuters said.