US Senate Blocks Stablecoin Regulation Bill Amid Rising Democratic Resistance

A key U.S. Senate vote to advance stablecoin regulation failed on Thursday, delaying legislation that could bring oversight to digital assets like USDC and USDT. Despite earlier bipartisan support in the Senate Banking Committee, the bill was stopped by a 48-49 vote — falling short of the 60 votes required to begin formal debate.

Senators Josh Hawley and Rand Paul joined Democrats in voting against the bill, and Senate Majority Leader John Thune switched his vote to "no" procedurally, allowing a potential reintroduction later. The bill aimed to regulate the stablecoin market, a critical part of the crypto ecosystem, which remains largely unregulated.

Opposition emerged from some Democrats who had initially supported the bill, citing concerns over insufficient safeguards against illicit finance and political conflicts of interest, including former President Donald Trump’s crypto ties. Senator Ruben Gallego, who received significant crypto PAC support in 2024, said more time is needed to finalize the text and educate lawmakers.

Republicans argued the legislation had already undergone extensive revisions, with six versions presented. Senator Cynthia Lummis emphasized bipartisan collaboration, while Senator Bill Hagerty, the bill’s original sponsor, warned that rejecting debate was akin to “killing the crypto industry in America.”

Senator Mark Warner echoed the need for further refinement but maintained that stablecoins are “undeniably a part of the future of finance.” Lawmakers remain hopeful the bill could reemerge for debate next week.

This delay marks another setback for crypto regulation in the U.S., where clear legal frameworks are increasingly critical for institutional adoption and industry growth. The stablecoin bill remains a focal point for the crypto sector, awaiting renewed bipartisan momentum to move forward.