Congress
Capitol agenda: Crypto chaos hits the Senate
The GOP’s tax cut megabill isn’t the only one of President Donald Trump’s priorities in jeopardy on Capitol Hill. Republicans have an unexpected crypto problem, too.
Crypto turmoil is unfolding in the Senate after nine key Democrats led by Sen. Ruben Gallego said this weekend that they would oppose GOP-led legislation that would carve out new rules for so-called stablecoins.
The Democrats’ surprise shift is an urgent problem for Senate Republicans, who are trying to expedite a floor vote on the bill by late May and give Trump a big, beautiful crypto bill to sign soon.
Why does it matter? The crypto fight is one of the first major tests of Republicans’ ability to work across the aisle in the second Trump era. Unlike budget reconciliation, GOP senators need Democrats to overcome a Senate filibuster.
It’s also a big test for Democrats, who have long been deeply divided over the risks and rewards of cryptocurrency trading. Sen. Elizabeth Warren is trying to stop her colleagues from following the lead of Sen. Kirsten Gillibrand, the stablecoin bill’s lead Democratic co-sponsor.
It comes after the crypto industry grew its influence by dumping tens of millions of dollars into congressional races last year.
What went wrong? The nine Senate Democrats — including four who backed an earlier version of the bill in committee in March — blasted changes that Republicans made in the last several days and said the latest proposal would allow stablecoins to pose too many risks to the financial system. Among the Democrats who signed on: Sens. Mark Warner, Lisa Blunt Rochester and Andy Kim.
Several Democratic senators raised concerns at a closed-door caucus meeting last Thursday about advancing an industry-backed crypto bill as the Trump family tries to build its own crypto empire. Senate Minority Leader Chuck Schumer urged Democrats not to commit to supporting the stablecoin bill, saying they should use their leverage to force additional changes to the legislation.
What’s next? GOP aides involved in talks say they were stunned by the Democrats’ statement Saturday but remain hopeful that there is still a path forward. And if the stablecoin legislation clears the Senate in the coming weeks, it would need to be reconciled with a separate but similar bill that is awaiting a floor vote in the House.
Internal GOP tensions could also emerge if House Republicans try to take a bigger swing at crypto by packaging the stablecoin effort with a broader regulatory revamp that would overhaul how the SEC and CFTC police crypto trading. Senate leaders including Banking Chair Tim Scott want to notch a win by first passing the stablecoin bill — long seen as the “low-hanging fruit” of crypto policy — and taking up the broader revamp later.
What else we’re watching:
— Big, beautiful bill problems: Speaker Mike Johnson has major policy clashes to resolve this week before House Republicans can move ahead with key committee votes on Trump’s big domestic policy bill, including on Medicaid, food aid and tax. The pressure is on with Senate Republicans watching and poised to scale things back.
— Thune’s EV decision: Senate Majority Leader John Thune needs to make a call on whether to nix a waiver that lets California set stricter car emissions standards rules after the House voted to do so last week. The GAO found that the waiver doesn’t fall under the scope of the Congressional Review Act, and the Senate parliamentarian is backing up that decision. But some GOP senators see a potential path forward in targeting the GAO’s role instead.
— New drug cost bill: Sens. Josh Hawley and Peter Welch are teaming up on legislation that would bar drug companies in the U.S. from charging higher prices than the international average. The bill is different than the pharmaceutical industry crackdown that the Trump administration is proposing to help finance the GOP budget reconciliation bill, but underscores the bipartisan and populist interest in targeting the drug companies.
Jordain Carney, Meredith Lee Hill, Lisa Kashinsky, Ben Leonard and Mia McCarthy contributed to this report.
Congress
Elizabeth Warren backs Mallory McMorrow in Michigan Senate primary
Massachusetts Sen. Elizabeth Warren is wading into Michigan’s closely contested Democratic Senate primary, backing state Sen. Mallory McMorrow over two rivals.
It’s a somewhat counterintuitive endorsement for the progressive U.S. senator who has made her backing of Medicare for All a core part of her political identity. McMorrow opposes Medicare for All, while Abdul El-Sayed, one of McMorrow’s opponents, supports it.
But the endorsement is a coup for McMorrow as she seeks to win over the progressive wing of the party in her bid to succeed retiring Democratic Sen. Gary Peters. McMorrow has now secured endorsements from four senators — with Warren joining Chris Murphy of Connecticut, Martin Heinrich of New Mexico and Peter Welch of Vermont — more than opponents El-Sayed and Rep. Haley Stevens.
Warren said in a statement her relationship with McMorrow goes back nearly a decade.
“I remember first calling Michigan State Senator McMorrow after she flipped a Republican-held seat in 2018, and I was immediately inspired by her ideas, her plans, and her fight to make a real difference,” she said. “Mallory is both a fighter and a winner, and I’m proud to endorse her because she’s the proven leader Michigan needs in the United States Senate.”
Congress
Capitol agenda: Tulsi Gabbard takes the hot seat
Tulsi Gabbard heads into Senate Intelligence on Wednesday facing one of the most fraught moments of her tenure as director of national intelligence.
The longtime anti-interventionist is set to be the main character at Wednesday morning’s worldwide threats hearing when she appears with other administration officials, after former top aide Joe Kent resigned as director of the National Counterterrorism Center over the Iran war.
Kent’s resignation has raised the question of how much longer Gabbard will serve in the administration. She’s largely been silent since the U.S. and Israel began striking Iran in late February, and she’s been kept out of military planning on Iran since the U.S. struck nuclear sites in the country last summer.
“Both Kent and Gabbard have had less and less influence,” one House Republican granted anonymity to speak openly said. “They’ve been sidelined.” Gabbard will appear before House Intelligence Thursday.
Gabbard’s testimony last March that downplayed Iran’s nuclear weapons program — prompting a “she’s wrong” from President Donald Trump — is poised to be revisited by senators at Wednesday morning’s hearing, as are her anti-war positions.
“The president made the right move based upon the information that we’ve all seen in classified sessions,” said South Dakota Sen. Mike Rounds, an intel committee Republican. He signaled that Gabbard could be asked about her previous assessment at the hearing.
Around the same time in Dirksen this morning, Sen. Markwayne Mullin (R-Okla.) will be in the hot seat as he testifies on his nomination to replace Kristi Noem as Homeland Security secretary.
Senate Homeland Security is expected to quickly approve the nomination Thursday, though it’s TBD to what extent Mullin will get bipartisan support beyond Sen. John Fetterman (D-Pa.).
“We actually have a pretty good working relationship, and have worked on projects together, but we do have a lot of questions,” said Arizona Sen. Ruben Gallego, a committee Democrat who has yet to say how he’ll vote. “Largely it’s like, who really is in charge of DHS? … Is it going to be Stephen Miller’s in charge?”
What else we’re watching:
— House gets a FISA briefing: Trump officials will host a classified briefing for House members at 3:30 p.m. on the administration’s push for a clean reauthorization of Section 702 of the Foreign Intelligence Surveillance Act, or FISA, due to expire April 20, as conservatives threaten to tank the effort.
Speaker Mike Johnson said he believes his members who are currently opposed to a clean, 18-month extension will ultimately vote for the party-line rule. But two House Republicans are already publicly vowing to oppose the procedural rule to tee up a clean FISA reauthorization, which leaders are aiming to put on the floor next week.
— DOJ officials brief House Oversight: Attorney General Pam Bondi and her deputy Todd Blanche will be on Capitol Hill on Wednesday to brief House Oversight Committee members on the Justice Department’s ongoing Jeffrey Epstein investigation.
It comes the day after the chair, Rep. James Comer (R-Ky.), subpoenaed Bondi to testify under oath as part of the committee’s own Epstein probe. But a GOP spokesperson for the committee said that Wednesday’s briefing, which was scheduled at DOJ’s request, won’t be a substitute for Bondi’s future testimony.
John Sakellariadis, Meredith Lee Hill, Mia McCarthy and Hailey Fuchs contributed to this report.
Congress
The Senate’s marathon elections debate is dividing Republicans, not Democrats
Senate Republicans want to use their party-line elections bill as a cudgel against Democrats. They need to stop sparring with each other first.
Republicans kicked off debate Tuesday on the SAVE America Act, a House-passed bill that would create new proof-of-citizenship and photo ID requirements in order for Americans to participate in federal elections. In a bid to pacify House and Senate conservatives, a fervent base flooding their social media mentions and even President Donald Trump — who views the legislation as his “No. 1 priority” — Senate Republicans are expected to spend days, if not weeks, discussing the legislation.
The chances the push will succeed in passing the bill, which Democrats uniformly oppose, are miniscule. And it’s not at all clear that spending two weeks on the bill will be enough to quell what has been an intense GOP-on-GOP pressure campaign that has sucked up much of the focus in the weeks leading up to Tuesday’s vote.
“We’ll find out, you know?” Senate Majority Leader John Thune said when asked if he knew if it would be enough to satisfy Trump, who has repeatedly urged Republicans to skirt the 60-vote filibuster to pass the bill. “What I promised from the very beginning is we’ll get it up and we will have a vote. I can’t guarantee the result.”
He added that Trump and others also “want us to nuke the legislative filibuster in order to do it, and that’s also something I’ve been very clear about — there just aren’t the votes.”
Spending more than a week of floor time on a bill that is all but guaranteed to fail isn’t typically how the Senate operates. Usually, to show legislation supported by their own party can’t clear the chamber’s supermajority threshold, Senate leaders quickly move to end debate and prove it can’t get 60 votes.
But Senate Republicans are under intense pressure to show that they are fighting Democrats for “election integrity” — an issue they believe polls well for them but appears to be causing little heartburn for Democrats so far. Some believe forcing a “talking filibuster” where opponents have to hold the floor indefinitely will force the opposition to cave.
Democratic senators shrugged off the strategy Tuesday, vowing that no matter how long Republicans drag out the debate, there is no way the election bill can garner 60 Senate votes.
“If MAGA Republicans want to bog down the Senate over a debate on voter suppression, Democrats are ready. We’re ready to be here all day, all night, as long as it takes,” Senate Minority Leader Chuck Schumer told reporters. “Senate Democrats will never let this rotten bill move through this body.”
Sen. Chris Murphy (D-Conn.) said in an interview that Democrats will “spend the next two weeks painting them as totally out of touch.”
The Senate is expected to stay in session late into the night and into the weekend as senators hammer each other over the bill. Thune has been careful not to outline a date certain for the end of the debate, and both parties expect the process to eat up much of the next week and a half.
Sen. Tim Kaine (D-Va.) predicted “late nights with us having folks on the floor as long as Republicans do … being ready for procedural motions that we’ll have to respond to in real time.”
Democrats have filed dozens of amendments to the bill, including requiring proof of citizenship to purchase an assault weapon, restoring lapsed Obamacare tax credits and tying the bill’s implementation date to the price of gas. But unlike a true “talking filibuster,” where they would be able to offer those amendments and force Republicans to take politically uncomfortable votes, Thune took steps Tuesday to keep tight control of the debate by calling up a series of Republican amendments.
Both parties have procedural curveballs they could throw. If no one is speaking, Republicans could try to move immediately to a final vote on the bill at a simple majority, while Democrats could try to adjourn or set the bill aside altogether. They are likely to pause the debate later this week by forcing a privileged vote on a resolution limiting Trump’s ability to take military action in Iran without congressional approval.
But those actions appear destined to fall short of the hardball tactics demanded by the party’s MAGA wing, including Sen. Mike Lee (R-Utah) — who is clamoring for the Senate to stay in session until Democrats capitulate. And even some of Lee’s allies are starting to acknowledge the bill is barreling toward a 60-vote hurdle that it can’t clear.
“If we do not act on an issue that commands this level of support … we should not be surprised when the American people lose confidence in our willingness to fight for them,” Lee told fellow Republicans from the Senate floor Tuesday night.
The initial hours of debate Tuesday were nothing out of the ordinary. Senators agreed unanimously to structure the debate, rotating which party had time to speak about the bill. There were long stretches of floor silence as the evening wore into night, and the chamber adjourned as it typically does at the end of the day. The Senate won’t come back into session until noon Wednesday.
Across the Capitol, the hardball tactics weren’t any more effective. Some House Republicans vowed to block any Senate bill to pressure their counterparts into passing the elections overhaul, but two Senate bills already cleared the chamber this week.
Senate Republicans, meanwhile, are struggling to resolve internal divisions. Some of those are tactical, but others are substantive. Sen. Lisa Murkowski of Alaska has declared her opposition to the bill as a federal overreach into traditionally state-run elections. And Trump’s push to largely ban mail-in voting is a fierce point of contention that came up during the GOP’s closed-door lunch Tuesday, according to three attendees granted anonymity to describe the private discussion.
Amid backlash from several GOP senators, Republicans reworked a mail voting amendment with the White House’s blessing to try to assuage concerned members. The change includes a state-defined “hardship” exemption from in-person voting, according to a copy of the updated proposal obtained by Blue Light News. The amendment is expected to get a vote as part of the Senate’s marathon debate, while internal discussions continue about two other Trump-requested additions: restricting trans women from competing in women’s sports and banning gender-affirming surgeries for minors.
That would still fall short of the talking filibuster demanded by Lee, an army of online supporters and Trump, who spoke with Lee Monday about the bill. The Utah Republican said Monday night, “If your senators don’t support using the talking filibuster to pass the SAVE America Act, you might need to replace them.”
Asked about Lee’s comments, Thune urged his party to redirect their fury.
“I prefer to have our fights with Democrats,” Thune said. “And I’m always someone who believes it’s far better for us to have a majority in the United States Senate.”
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