By Hannah Lang (Reuters) -Legislation that would create a regulatory framework for U.S. dollar-pegged cryptocurrency tokens known as stablecoins faced a setback on Thursday as the bill failed to clear a key hurdle in the U.

Democrats turned against a Senate stablecoin bill Thursday that some had supported in committee, leaving it short of votes needed to advance.

Last-minute Democrat objections led to a failed vote to move into debate on a top crypto industry legislative priority to regulate dollar-based tokens.