Democratic Opposition Stalls Stablecoin Bill, Fueling Market Concerns

# U.S. Senate Stablecoin Bill Faces Major Setback as Democratic Support Declines The proposed U.S. Senate stablecoin bill has hit an unexpected major roadblock, with nine Democratic lawmakers initially in favor of cryptocurrency withdrawing their support, leaving the industry in shock. Sources reveal that these lawmakers are concerned about the bill's current draft, reflecting deeper party divisions on cryptocurrency regulation. On October 5, Senator Elizabeth Warren expressed concerns that the bill, in its present form, may lack crucial national security and anti-money laundering protections. Complicating matters further, recent allegations involving cryptocurrency transactions linked to former President Trump's family have escalated scrutiny around the legislation. Although the bill has not been outright rejected, it is likely to undergo revisions before another legislative attempt. Senator Ruben Gallego of Arizona remarked, “This situation does not reflect a sudden shift in opposition,” indicating that a revised version might still gain Senate approval. # Arizona Governor Vetoes Strategic Bitcoin Reserve Bill In other news, Arizona Governor Katie Hobbs has vetoed the Arizona Strategic Bitcoin Reserve Bill (Senate Bill 1025), disappointing Bitcoin and cryptocurrency proponents. The bill aimed to establish a Bitcoin reserve as a strategic asset for the state. Governor Hobbs defended her veto, stating that it would be inappropriate to invest Arizona’s public retirement funds in untested virtual assets like Bitcoin. With this decision, Arizona becomes the sixth state—joining Montana, North Dakota, South Dakota, Wyoming, and Pennsylvania—to reject similar Bitcoin reserve legislative proposals. These developments underscore the ongoing debate and regulatory uncertainty surrounding cryptocurrencies at both state and federal levels in the U.S. Market participants and policymakers are closely monitoring the evolving legislative landscape.