The U.S. Senate advanced a significant measure on May 19, with the procedural vote passing 50-47 to challenge President Trump's war powers regarding Iran. According to Reuters reports, the resolution, sponsored by Senator Tim Kaine, would require Trump to seek congressional authorization before continuing military operations. The measure gained support from four Republicans alongside most Democrats, though it still faces substantial legislative hurdles ahead. Democratic Senator Tim Kaine, who sponsored the bill, stated that Congress should decide whether the U.S. stays in the conflict, writing that Trump launched an 'illegal war' 80 days earlier and that Congress has the power to slam the brakes on this unwise conflict.
Major cryptocurrencies bounced during Wednesday's Asian trading hours after the Senate voted to curb President Donald Trump's Iran war powers, easing market uncertainty. Bitcoin climbed to about $77,200, up 0.5% since midnight UTC hours, while XRP, ether and solana rose 0.4% to 0.8%, according to CoinDesk data. These gains followed five straight days of losses that saw BTC pull back to nearly $76,000 from $82,000, as U.S. Treasury yields hardened and spot ETFs registered massive outflows. The so-called Upper House voted 50-47 to pass the bill, after seven failed attempts since the conflict began in late February. As reported by Reuters, the cryptocurrency had previously jumped near $79,500 in April after reports of a new Iran proposal, before experiencing a sharp pullback that erased gains.
Traditional markets also offered risk-on cues, with WTI crude futures falling 0.75% to $103.42. Yields on the 10- and two-year Treasury notes fell by over two basis points each, while futures tied to Nasdaq rose 0.33%. The positive sentiment was further buoyed after President Trump directed the Federal Reserve to review depository institutions' access to payment services, a critical development for the crypto industry. As Zaye Capital Markets CIO Naeem Aslam noted, "Wider access to payment rails and depository services can improve institutional confidence, liquidity, settlement efficiency, and long-term adoption."
Adding to market uncertainty, experts looked to Wednesday's release of the minutes of the April Federal Reserve meeting as the next major catalyst. Dessislava Ianeva, analyst at Nexo, stated that the minutes will be parsed for how persistently above-target inflation is being weighted against growth risks. The resolution faces a difficult path to becoming law, as reported by Reuters, requiring passage through both the full Senate and Republican-led House, followed by potential Trump veto. Congress would need two-thirds support in both chambers to override any presidential veto.
Market analysts present mixed views on the potential impact of the resolution and related developments. Bitrue Research Institute research lead Andri Fauzan Adziima suggested the vote could serve as "a strong bullish catalyst for crypto," with Bitcoin potentially seeing a 6% to 10% relief rally. However, the resolution is not currently law, and future market reactions will depend on Congressional advancement, Trump's resistance, and whether tension around Iran and the Strait of Hormuz eases. The muted reaction showed that traders were still focused on macro data, oil prices, inflation, and the next step in Congress.
