<div id="readability-page-1"><img width="1536" height="1024" src="https://imageproxy.pbkrs.com/https://invezz-wp-media.lon1.digitaloceanspaces.com/2026/05/ChatGPT-Image-May-20-2026-11_11_16-AM.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz-wp-media.lon1.digitaloceanspaces.com/2026/05/ChatGPT-Image-May-20-2026-11_11_16-AM.png"/>Crypto traders are closely monitoring the US Senate’s procedural push to limit military action against Iran, weighing how a reduction in geopolitical risk premiums might impact liquidity flow into Bitcoin, Ethereum, and XRP.According to recent reporting, Senate lawmakers have approved a war powers resolution aimed at limiting President Donald Trump’s ability to continue military operations against Iran without congressional approval by a 50 to 47 margin, with four Republican senators joining Democrats in support of the measure.The legislation, introduced by Democratic Senator Tim Kaine of Virginia, invokes the War Powers Act of 1973 and seeks to restrict unauthorised military action by requiring congressional authorisation for continued hostilities.Rising fuel and shipping costs linked to instability around the Strait of Hormuz have already weighed on global markets, while investors continue monitoring the risk of prolonged disruptions to energy supplies.For crypto traders, the Senate vote introduced a fresh macroeconomic narrative.Markets have spent months reacting to geopolitical uncertainty, particularly after repeated military escalations in the Middle East triggered spikes in oil prices and pushed investors toward defensive positioning.Bitcoin has struggled to reclaim higher levels during this period, while Ethereum and XRP have also traded within narrow ranges amid a visible lack of risk appetite.<h2>Signs of de-escalation could support risk sentiment</h2>Energy traders had previously priced in the possibility of wider supply disruptions if military activity intensified near critical shipping routes.According to the uploaded report, the Senate’s move has been interpreted by some market participants as an early de-escalation signal because it increases political pressure on the White House to justify continued military engagement.Market analysts have argued that any reduction in geopolitical tensions could improve sentiment across speculative markets, including cryptocurrencies.Bitcoin, which often reacts sharply to macroeconomic headlines, has historically posted relief rallies following signs of diplomatic progress or reduced conflict risks.As previously covered on Invezz, any form of de-escalation headlines over the past months had triggered immediate 3% to 5% gains in Bitcoin prices as traders rotated back into higher-risk assets.At the same time, Ethereum’s outlook has also become tied to the return of liquidity into decentralised finance markets.Periods of military uncertainty have historically reduced activity across decentralized applications as investors focused on preserving capital rather than deploying funds into yield-generating protocols.Reduced geopolitical stress, the report added, has typically encouraged higher on-chain activity and stronger Ethereum demand.Attention has also turned toward XRP because of its role in cross-border payment infrastructure.Escalating geopolitical conflicts often increase compliance risks and banking uncertainty, factors that can slow institutional engagement with blockchain-based payment networks.If tensions cool and financial conditions stabilize, XRP could benefit from renewed confidence among firms exploring digital asset integrations for international settlements.<h2>Will the resolution pass?</h2>Despite the procedural victory in advancing this war powers resolution, the realistic odds of it becoming a binding law remain exceptionally low due to the steep constitutional steeplechase it faces.While the 50 to 47 vote demonstrates a crack in party unity, with four Republicans crossing the aisle to vote with the majority of Democrats, this margin is nowhere near the numbers required to survive the next legislative phases.To successfully pass the full Senate, the resolution must survive intense floor debates and a final vote, which will require keeping a fragile coalition together while navigating a chamber where several members are frequently absent due to ongoing campaign obligations.Even if the resolution successfully clears the Senate floor, its journey faces a massive roadblock in the House of Representatives, where leadership has historically maintained a deeply protective stance over executive military discretion.House leadership has explicitly criticised similar war powers measures, likening legislative constraints during ongoing operations to a strategic misstep that compromises national security interests.Because the legislative body remains structurally aligned with the administration's broader foreign policy objectives, organising the necessary majority to pass an identical resolution in the lower chamber presents an almost insurmountable challenge for anti-war lawmakers.Even if both chambers approve the bill, Trump could still veto the resolution. Overriding a presidential veto would require a two-thirds majority vote in both the Senate and House, a threshold the current coalition supporting the measure appears far from reaching.At the time of publication, Bitcoin and the broader crypto market have yet to react to the latest development.Bitcoin was hovering around $77,000 with less than 1% gains on the day, while Ethereum and XRP were navigating losses between 1-3%.The post Bitcoin, Ethereum, XRP outlook as US Senate targets Trump’s Iran war powers appeared first on Invezz</div>

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Traders are monitoring the US Senate's resolution to limit military action against Iran, which could reduce geopolitical risks and support the recovery of Bitcoin, Ethereum, and XRP. The Senate's move is seen as a potential de-escalation signal, possibly improving market sentiment. However, the resolution faces significant hurdles in becoming law, including potential presidential vetoes. Currently, Bitcoin is around $77,000 with minimal gains, while Ethereum and XRP are experiencing slight losses.

- The US Senate has approved a war powers resolution to limit military action against Iran, potentially easing geopolitical risks and influencing liquidity flow into Bitcoin, Ethereum, and XRP.  
- This resolution, which requires congressional approval for military operations, may signal a change in market sentiment as crypto traders assess its implications for risk appetite.  
- However, the resolution's actual passage faces significant hurdles, including potential presidential veto and challenges in the House of Representatives, leaving the crypto market largely unaffected for now.