Democrats Oppose Stablecoin Bill, Raising Market Concerns

# U.S. Senate Stablecoin Bill Hits Another Roadblock as Democratic Support Wanes The U.S. Senate's proposed stablecoin legislation has faced a significant setback, as nine pro-crypto Democratic lawmakers have unexpectedly withdrawn their support, shocking the industry. Sources indicate that these lawmakers have expressed concerns about the current draft, highlighting deeper divisions within the party over cryptocurrency regulation. On October 5, Senator Elizabeth Warren voiced her concerns that the bill, if passed in its present form, might not sufficiently address critical national security and anti-money laundering safeguards. Adding to the controversy, allegations involving cryptocurrency transactions linked to former President Trump’s family have further intensified scrutiny of the legislation. While outright rejection has not been confirmed, the bill may undergo amendments before another attempt at passage. Senator Ruben Gallego of Arizona stated, "This situation does not reflect a sudden shift in opposition," suggesting a reworked version could still find favor in the Senate. # Arizona Governor Rejects Strategic Bitcoin Reserve Bill At the same time, Arizona Governor Katie Hobbs has dealt a blow to Bitcoin (BTC) and cryptocurrency advocates by vetoing the Arizona Strategic Bitcoin Reserve Bill (Senate Bill 1025). The legislation aimed to create a Bitcoin reserve for the state as a strategic asset. Governor Hobbs justified her decision by arguing that investing Arizona’s public retirement funds in untested virtual assets like Bitcoin would be inappropriate. By rejecting the bill, Arizona joins Montana, North Dakota, South Dakota, Wyoming, and Pennsylvania as the sixth state to turn down similar Bitcoin reserve legislative proposals. These developments underscore the ongoing debate and regulatory uncertainty surrounding cryptocurrencies within state and federal governments in the U.S. Market participants and policymakers alike are closely watching as the legislative landscape continues to evolve.