According to a recent report by Politico, crypto-friendly Democratic senators have reportedly soured on high-stakes stablecoin legislation.
The development means that the bill’s odds of advancing further are now significantly slimmer.
The current version of the bill still has some issues that need to be resolved before it can proceed further, according to several Democrats who previously backed the pro-crypto legislative effort led by the Republicans. Democratic lawmakers are particularly concerned about issues such as national security, money laundering and foreign stablecoin issuers. They also want more accountability for those stablecoin issuers that fail to meet the requirements outlined in the bill.
As reported by U.Today, Senate Majority Leader John Thune wants to pass the much-talked-about bill before Memorial Day.
The Republicans have to secure support from at least seven Democrats in order to reach the 60 votes that are needed to overcome a filibuster and invoke cloture.
Some of the Democrats, such as Arizona Senator Ruben Gallego, are now considering withdrawing their support, a move that is likely meant to secure additional concessions before a full Senate vote, according to Politico.
Partisan issue
Even though there are some pro-crypto Democratic lawmakers, crypto remains largely a partisan issue in the U.S.
On Sunday, Katie Hobbs, the Democratic governor of Arizona, was criticized by members of the cryptocurrency community after vetoing a strategic reserve bill (SRB). Arizona would have been the very first state to pass such legislation.