Senate Democrats have blocked legislation to regulate stablecoins, a form of cryptocurrency, after arguing that the bill needed stronger protections and airing concerns that it could help President Donald Trump enrich himself.
The bill, which would regulate how stablecoin issuers operate in the U.S., had previously won some Democratic support. But it failed 49-48 on a procedural vote Thursday after Democrats said that they needed to see more changes to the legislation before they could back it.
Senate Majority Leader John Thune said that Republicans would work with Democrats if they allowed the bill to move forward, but they refused. All Democrats voted not to bring it up.
The vote is a blow to one of Trump's top legislative priorities and a setback for the cryptocurrency industry, which spent heavily in last year's election and has been emboldened to cement its influence in politics and the mainstream financial system. The legislation would aim to create a federal framework to regulate the stablecoin industry, which is currently governed by a patchwork of existing federal and state laws.
Stablecoins are a fast-growing corner of the cryptocurrency industry that have produced enormous profits for some of the major players involved. They offer a buffer from cryptocurrency's notorious volatility because they are pegged to real-world assets, like U.S. dollars or gold. Typically, that means a single stablecoin is worth 1, making them a much more reliable digital asset to make commercial transactions than other forms of crypto.