Congress
Capitol agenda: A crypto titan flexes in the Senate
Tim Scott is facing a crypto calamity.
Landmark digital asset legislation that the Senate Banking chair hoped to advance out of committee Thursday is in extreme jeopardy after one of the industry’s most influential executives announced his opposition Wednesday, setting off a scramble in the Senate and the White House to rescue the bill.
Scott has now postponed the markup, and it’s unclear where he goes from here.
The last-minute backlash is crypto’s biggest flex yet on Capitol Hill, after the industry’s largest players doled out more than $100 million on races across the country to ensure their allies controlled the 119th Congress.
Scott is facing opposition from Coinbase CEO Brian Armstrong, founder of the largest U.S.-based crypto exchange. Coinbase has one of the most aggressive lobbying and legal operations in the realm of crypto policy, and it has pumped tens of millions of dollars into a pro-crypto super PAC network.
The bill at issue is on its face the kind of thing crypto companies have been working toward for years — a sweeping rewrite of Wall Street regulations to accommodate the trading of crypto tokens. It’s also a top financial policy priority for the Trump administration.
But the legislation isn’t accommodating enough for Coinbase, which had been generally supportive of Scott’s approach until he revealed a new version of the bill this week.
“Evidently, the industry writes the bill and if anybody in Congress has the nerve to slightly amend it, the industry says that the whole thing is off and they have canceled the law,” Massachusetts Sen. Elizabeth Warren, the top Democrat on Senate Banking and an opponent of the bill, told Blue Light News. “These are folks who think that when they’ve bought themselves a Congress, then they expect it to behave the way they say.”
Armstrong is balking at what he calls the bill’s “erosion” of authority at the Commodity Futures Trading Commission — a regulator the industry has long preferred over the Securities and Exchange Commission. He’s also concerned about the potential for amendments that would crack down on “rewards” from stablecoins — a flashpoint between crypto firms and traditional banks, which see them as threats to old-school savings accounts.
“We’d rather have no bill than a bad bill,” Armstrong wrote on X — a statement that was also at odds with other big players in the crypto world, who say the bill is flawed but still worth advancing.
Before Armstrong’s surprise rebellion, Scott told Blue Light News that he was fully committed to holding the markup, despite looming opposition from key crypto-friendly Democrats and further complications from Republican allies of the banking industry.
“I am hopeful that it will be a bipartisan victory,” Scott said Wednesday around noon. “But at the end of the day, it’s time for us to come and say where we are on the underlying issues.”
But for some Republicans, the outcome was obvious after Armstrong’s power play.
“I think there’s a deal to be had,” Sen. Thom Tillis (R-N.C.) said. “But [Armstrong’s] probably made the right assessment in terms of us being ready for the markup.”
What else we’re watching:
— Approps progress: Senators expect to pass the three-bill appropriations minibus Thursday, and some are confident that another funding package could be released this weekend covering Defense, Transportation-HUD and Labor-HHS-Education. Senate Majority Leader John Thune told Blue Light News that senators are keeping their options open for how to process the six remaining funding bills once they return from next week’s recess.
— What’s next on war powers: Sen. Tim Kaine (D-Va.) says Democrats plan to force votes on military action in Greenland, Iran, Colombia, Mexico, Nicaragua and Cuba, after Republicans derailed the Venezuela war powers measure Wednesday. “You make them have to work their ass off to keep their people in the corral,” Kaine told reporters.
Meredith Lee Hill, Jordain Carney and Calen Razor contributed to this report.
Congress
Republicans confront the massive cost of Trump’s Middle East war
Republicans on Capitol Hill are preparing to confront a staggering price tag for the war in the Middle East after closed-door briefings this week detailed the rapid consumption of expensive munitions and the lack of any firm deadline for the end of the military campaign.
Asked how much the Iran offensive would cost, House Appropriations Chair Tom Cole (R-Okla.) didn’t sugarcoat it.
“A lot,” he replied.
Senior Republicans privately expect President Donald Trump’s administration to request tens of billions of dollars for the Middle East conflict and other military needs from Congress in the coming days, with some GOP lawmakers hearing estimates that the Pentagon is spending as much as $2 billion a day on the war.
Three F-15E jets shot down by friendly fire in Kuwait are estimated to cost $100 million alone. But Trump officials in private briefings have declined to give lawmakers any specific numbers, according to six congressional Republicans granted anonymity to describe the internal discussions.
A White House request for supplemental funding could further balloon once it hits Capitol Hill, according to four other people with direct knowledge of the matter. Farm-state Republicans want an additional $15 billion in tariff relief for farmers, while others float adding tens of billions of dollars in wildfire aid to get enough Democratic support to pass the massive bill.
The prospect of a growing new spending measure has GOP leaders bracing for a messy internal fight, with fiscal hawks who have long decried “forever wars” and bloated Pentagon budgets deeply unsettled by some of the cost estimates flying around on Capitol Hill. At the very least, some are planning to demand offsetting spending cuts.
“I haven’t seen any specifics … but if it’s unpaid-for, I generally have an issue,” Rep. Russ Fulcher (R-Idaho) said.
Another House Republican granted anonymity to describe the conversations among GOP hard-liners said, “It’s not a ‘hell no,’ but it should be offset somehow.”
The topic is now looming over next week’s House Republican policy retreat, which kicks off Monday with a speech from Trump at the president’s resort in Doral, Florida. If the administration sends its formal funding request in the coming days, House GOP leaders will be forced to confront the issue head on.
At least some are expressing unqualified early support for any administration request. House Foreign Affairs Chair Brian Mast (R-Fla.), for instance, said in an interview this week he is ready to support an emergency funding bill spending tens of billions of dollars on the Iran operation alone.
That sentiment could be challenged by the congressional Republicans who are privately wary of the open-ended timeline and shifting rationales for the war. One House Republican recently remarked that Trump’s pledge to do “whatever” it takes, including entertaining boots on the ground, sounded like “President Lyndon Johnson going into Vietnam.”
Rep. Ryan Mackenzie, a vulnerable Pennsylvania Republican, noted that “as much as we need to neutralize their capabilities to continue to attack us, we do also need to make sure that we don’t get dragged into a forever war.”
Asked in an interview if Congress is ready to approve a $50 billion Pentagon funding package, Speaker Mike Johnson replied that he didn’t know the specific number yet but Congress would pass the bill “when it’s appropriate and get it right.”
“We’re waiting on the White House and [the Pentagon] to let us know, but we have an open dialogue about it,” Johnson said.
House Majority Leader Steve Scalise, who is attuned to the spending concerns among the fiscal hawks inside the GOP ranks, demurred when asked about the potential for a $50 billion package.
“We’re still just in the first few days of this conflict, and there’s no ask yet from the Department of War for a supplemental,” Scalise said in an interview Wednesday.
He referenced the laborious talks ahead: “When that time comes, we’ll obviously have very serious conversations, because it’s important that the Department of War have the tools they need to keep America safe.”
A bigger potential headache is brewing for Johnson as members of his conference debate whether additional military funding should go in a much-discussed but long-shot budget reconciliation bill. That could move to Trump’s desk along party lines without Democratic support, but only if Republicans are almost completely unified.
House Budget Chair Jodey Arrington (R-Texas) said in an interview this week he expected the chamber to move forward on an initial emergency funding bill but that a second filibuster-skirting megabill could contain additional Pentagon spending, along with some possible offsetting cuts.
“It’s not just for the current conflict,” Arrington said. “There are things that need to be retooled fundamentally at the Defense Department, and the president’s team is making a really good case for that.”
Rep. Ralph Norman, one GOP hard-liner who has objected in the past to big Pentagon budgets, now says he would “absolutely” support a $50 billion bill without offsets.
“I don’t like it, but with what this president’s doing with income — the GDP is increasing, the money he’s bringing in for other investments — to handicap him on that, that’s a problem,” said Norman, who is running for South Carolina governor and seeking Trump’s support.
In the Senate, some GOP appropriators are cautioning that any war funding bill will be a big lift — and warning the administration to get specific, and fast.
Sen. Lisa Murkowski (R-Alaska), a senior member of the Defense Appropriations subcommittee, said the “administration should not be taking anything for granted.”
“If they come to us at the end of the month and say, ‘This is what we want, and basically, deliver the votes’ … it’s not a winning strategy, in my view,” she said. “You’ve got to start making the case.”
Katherine Tully-McManus and Jennifer Scholtes contributed to this report.
Congress
GOP fundraiser with Hegseth scrapped amid Iran War buildup
Rep. Zach Nunn has postponed a planned “Top Gun” themed fundraiser with Defense Secretary Pete Hegseth that had drawn criticism over its timing — at the start of a war that has already resulted in U.S. casualties.
The Iowa Republican announced the postponement Thursday on social media.
Nunn had said Hegseth would appear at the fundraiser on Saturday, hours after the initial U.S.-Israeli airstrikes in Iran. The event, called “Top Nunn” and billed as a “salute to the troops,” was scheduled for later this month in a Des Moines suburb.
On Tuesday, the Pentagon publicly identified the first U.S. deaths in the war, troops who were killed by an Iranian drone strike in Kuwait. The six soldiers were assigned to an Army Reserve command based in Nunn’s district, and two of them were from Iowa.
The announcement of the fundraiser drew strong condemnation from Democrats, who accused Hegseth of leveraging the war for political purposes. Democratic Congressional Campaign Committee spokesperson Katie Smith attacked Nunn’s event as “callous and disqualifying” in a statement on Wednesday.
Nunn, a former intelligence officer for the Air Force, explained the postponement in a social media post while offering condolences to the families of the troops who were killed.
“Operation TOP NUNN is postponed. We will have more to share about the event soon, and all ticket holders will be notified of the new date,” Nunn said. “Our prayers are with the families and our action is with our troops on the frontlines.”
Nunn said he plans to attend the arrival of the remains of the six soldiers at Dover Air Force Base on Saturday along with President Donald Trump.
Nunn paid his respects to the six soldiers in a speech on the House floor Thursday and led a moment of silence.
Congress
Markwayne Mullin faces a straightforward path to confirmation as DHS secretary
In replacing ousted Homeland Security Secretary Kristi Noem, Donald Trump is opting for one of the more reliable strategies to guarantee a quick Senate confirmation — nominating a senator.
Trump’s choice of Sen. Markwayne Mullin of Oklahoma sets up a relatively straightforward process, with some Senate Democrats already indicating they are open to voting for him.
“We’ve been successful at whipping everybody the president has nominated, and I expect the same for Markwayne Mullin,” Sen. John Barrasso of Wyoming, the No. 2 Senate Republican, said Thursday.
Senate Majority Leader John Thune separately told reporters that he wanted to move Mullin’s nomination “quickly.” Trump did not indicate in his Truth Social post when he would send Mullin’s nomination to the Senate, but said he would take over “effective March 31.”
“He’s obviously pretty well-vetted around here, so hopefully we can get the process going,” Thune said.
Mullin thanked Trump for the nomination in a statement Thursday and said, “I look forward to earning the support of my colleagues in the Senate and carrying out President Trump’s mission alongside the department’s many capable agencies and the thousands of patriots who keep us safe every day.”
Noem was confirmed 59-34 by the Senate, but she lost the confidence of many of the lawmakers who voted to confirm her more than a year ago. Republican Sens. Thom Tillis of North Carolina and Lisa Murkowski of Alaska both called on her to step down after DHS agents killed 37-year-old Alex Pretti in Minneapolis and she labeled him a “domestic terrorist” without evidence.
Both Tillis and Murkowski praised Mullin Thursday in the immediate wake of Trump’s announcement.
“He’s a man of his word. I think he’ll go in, get experts in there, and prove to be an executive with the right kind of skills, and get things squared away quickly,” Tillis said, adding that the decision was good for Trump’s “legacy.”
Tillis noted separately that Mullin “likes dogs,” an apparent reference to a story Noem included in her memoir about killing a misbehaving dog named Cricket.
Murkowski said she had a “great deal of respect” for Mullin.
“He has been a really good liaison between the Senate, actually the whole Congress, and the White House,” Murkowski said. “I’ve got strong respect for the guy, so I think he’ll do a good job
Sen. James Lankford of Oklahoma, a member of GOP leadership, acknowledged that Mullin’s nomination is unlikely to be unanimous, but he thought he would be treated “fairly” by his Senate colleagues.
It’s rare for current or former senators to see their nominations to administration posts derailed, but it has happened — most famously in 1989, when the Senate rejected John Tower’s nomination as Defense secretary amid charges of alcoholism and womanizing. More recently, Sens. Tom Daschle (D-S.D.) and Judd Gregg (R-N.H.) withdrew their nominations under then-President Barack Obama in 2009.
Republicans can confirm any of Trump’s nominees on their own as long as most of their own members stay united. But they’ll get at least a little help: Sen. John Fetterman (D-Pa.) said Thursday he will support Mullin’s nomination — a nod that could be especially important because he’s on the committee that must advance Mullin’s nomination to the full Senate.
Other Senate Democrats, including Minority Leader Chuck Schumer, are telegraphing they will oppose Mullin as they also blockade DHS funding over the department’s aggressive immigration enforcement tactics.
“The Senate should not consider any DHS Secretary nominee until DHS and ICE are reined in,” Schumer wrote on X Thursday, saying he would vote against Mullin.
But other Democrats, including Sen. Chris Coons of Delaware, left the door open to supporting the eventual nomination.
“I’m open to it, but he’s going to have to make real changes,” Coons said.
There is one potential pitfall: Mullin reportedly recently called Sen. Rand Paul (R-Ky.), the chair of the DHS-overseeing committee, a “freaking snake.” Paul has broad latitude to schedule and advance the director’s nomination.
Spokespeople for Paul didn’t immediately respond to a request for comment on Mullin’s nomination.
Katherine Tully-McManus, Meredith Lee Hill and Calen Razor contributed to this report.
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