I'd just cut it off, get an adequate replacement (not sure what grade that bolt is, but it has to be substantial), and be done with it.

You can drive with the swaybar as it is, it may make some noise but won't do any harm. Just remember that with a lift and no swaybar, your truck will lean, so be cautious until you repair it.

4x4Wire's Toyota Section
1995 FZJ80 LandCruiser - 3 locking diffs, +200k mi, JD HIR's, 285/75R16 Nitto TG's
Olde North State Cruisers