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.

Senators face a key vote on a stablecoin regulation bill, but several Democrats who previously voted for the bill have backed out, putting its fate in question.

Stablecoins have come into focus on Thursday, as Democrats opposed legislation aimed at creating a legal pathway for the digital tokens.