Happy Thursday! Today, the Senate Banking Committee advanced some very important legislation relevant to this newsletter.

• Email us about what you think about these bills. It's complicated! crypto@axios.com.

Today's newsletter is 905 words, a 3-minute read.

The Senate Banking Committee this afternoon sent a stablecoin bill to the full chamber for debate.

• Why it matters: The committee markup on the GENIUS Act was a key step in advancing a stablecoin bill, one of the top digital asset-related priorities for Republican lawmakers in the new Congress.

Driving the news: The committee voted 18-6 to send the bill to the Senate floor, with five Democrats voting yes.

• Though a package of six amendments was approved during the markup, many others presented by Democrats were voted down.
• Democrats expressed frustration on some points, foreshadowing what's likely to come when the bill is debated before the full Senate.

Between the lines: A theme emerged about how blockchains impact law enforcement.

• Republicans contend that it is naturally bolstered by the increased footprint of U.S. dollars and the transparency of blockchain transactions.
• Democrats don't trust that and want to put in tighter rules and more specifics to make sure.

The big picture: Republicans argued this morning that several amendments proposed for GENIUS were more relevant for a future bill.

• "[This bill] is not a framework to regulate the secondary market," Sen. Cynthia Lummis (R-Wyo.) said. "That topic raises complex policy considerations that we need to discuss in the market structure legislation.
• "We're going from this bill to market structure," she said, referring to broader legislation to establish a regulatory framework for the cryptocurrency market. "We decided to talk about this in a narrow manner, and a number of the things that have been raised will be addressed, but they need to be addressed in market structure."

In the weeds: Sen. Mark Warner (D-Va.) stepped in before the vote to say he wouldn't have supported it without the amendments that passed today, which he contends tighten Bank Secrecy Act assurances.

Zoom in: Among the amendments passed in today's markup was one requiring character and fitness reviews by regulators of any officers or principals of stablecoin issuers, and one preventing issuers from using deceptive names.

• Another addressed bankruptcy, giving super priority to customers over other creditors with respect to stablecoin reserves.
• And one clarified that only government-issued debt can be considered a "similarly liquid asset" for purposes of stablecoin reserve requirements.

"This is about keeping innovation and opportunity on American soil rather than driving it overseas," Sen. Tim Scott, the committee chairperson, said in the opening.

• "If we are going to have economic supremacy in the world, it requires us to encourage, frankly, innovation before we stifle it with too much oppressive regulation."

What's next: The bill is now in the hands of Senate Majority Leader John Thune, who will decide when it hits the floor.

And also: The FIRM Act, on the debanking issue, passed the committee, 13-11, with some amendments that were endorsed by Scott, its sponsor.

Sen. Jeanne Shaheen (D-NH) won't seek reelection in 2026.

Why it matters: It's bad news for Democrats but probably good news for crypto advocates.

Catch up quick: Shaheen has been consistently anti-crypto.

• Beyond voting with her party, she co-sponsored the Digital Asset Money Laundering Act, which was basically the "anti-crypto army" bill.

What we're watching: Who steps up to take her place.

• That said, there's a lot of votes between now and the mid-term elections.

I learned a new term of art in Congress this week: blue slip.

• It's when the Senate sends something to the House and the House says: "No, this should have started here," because the Constitution says that all budget matters have to start in the House.

Driving the news: The House voted yesterday on the substance of Sen. Ted Cruz's Congressional Review Act. Since the Senate has voted this through, we would have thought the House vote would have been the end of it.

• It was not.

In the weeds: Because it got blue-slipped by the House, the Senate needs to vote on a version of the measure initiated by Rep. Mike Carey (R-Ohio).

• Congressional sources tell Axios that they are not worried about its passage. Time on the Senate calendar is precious, though, so it's anyone's guess just when it will happen.
• Then, finally, the measure will go to the White House.

We hit up the House majority leader's office to find out about timing. We will let you know.

Fun fact: Want to be more confused? The Senate has a version of a blue slip, but it deals with judicial nominees.

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Sources are telling the Wall Street Journal that the Trump organization is looking at ways to invest in the U.S. arm of Binance, the world's largest cryptocurrency exchange.

Why it matters: Boy, howdy. Binance has never really cracked the U.S. market and one of its major impediments has been regulatory skepticism about the company.

• Between the lines: Who would be in a better position to clear away some of its red tape than a president who was also an investor?

Zoom in: Binance founder Changpeng Zhao reportedly wants a pardon for the charges that sent him to jail for several months.

• Flashback: Justin Sun, the founder of the Tron blockchain, invested $75 million in the Trump-backed World Liberty Financial. Not long after, the SEC paused its lawsuit against him and his company.
• The source told WSJ today that Binance considered whether there was something to be learned from Sun's example.

The bottom line: A president's family making investments, especially in companies operating under a swiftly evolving regulatory regime, does not look great.

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This newsletter was edited by Pete Gannon and copy edited by Carolyn DiPaolo.

The Senate has a lot of crypto on its plate. GENIUS, FIRM and a second pass at the IRS broker rule repeal. Good thing it's not busy. —Brady