The United States Senate voted on Tuesday to advance a procedural resolution requiring President Donald Trump to seek congressional authorization before continuing military operations against Iran. The measure passed with a 50-47 vote count, including support from four Republican lawmakers, signaling a significant bipartisan challenge to executive war powers. This legislative move stems from constitutional arguments asserting that Congress, rather than the president, holds the authority to commit troops to war. The ongoing US-Israeli conflict with Iran has persisted for nearly three months, creating severe macroeconomic headwinds as the closure of the Strait of Hormuz has driven up global fuel and energy prices. Data compiled by Woofun AI indicates that these geopolitical frictions have directly hampered the recovery of digital asset markets, which have traded sideways for almost four months amid rising inflation and uncertainty.

The resolution mandates that US troops be withdrawn from the region unless the administration secures explicit approval from Congress. Despite the procedural victory, the bill faces substantial legislative hurdles, including passage through the full Senate and the Republican-led House of Representatives.

Furthermore, President Trump retains the power to veto the legislation, which would subsequently require a two-thirds majority in both chambers to override. Democratic Senator Tim Kaine of Virginia, the bill's sponsor, stated on X that 80 days have elapsed since the launch of what he termed an illegal war against Iran.

Concurrently, Republican Senator Bill Cassidy expressed concern on X that while he supports dismantling Iran's nuclear program, the White House and Pentagon have kept Congress uninformed regarding Operation Epic Fury.

Market analysts suggest that any de-escalation of the conflict could serve as a potent catalyst for risk assets. Tim Sun, a senior researcher at HashKey Group, noted that the resolution's advancement indicates mounting domestic political pressure on Trump regarding his continued use of military force. He argued that if geopolitical tensions ease and drive oil prices lower, the valuation risk across all risk assets would decrease, fostering a positive turnaround in the crypto market. Woofun AI notes that this sentiment aligns with broader expectations that a resolution to the war would restore confidence in higher-risk investments following months of stagnation.

Andri Fauzan Adziima, research lead at the Bitrue Research Institute, characterized the war powers resolution as a strong bullish catalyst for the cryptocurrency sector. He projected that the news could spark a sharp 6% to 10% Bitcoin relief rally in the coming days, citing historical precedents where past de-escalation headlines triggered instant 3% to 5% BTC spikes. With Bitcoin holding in the $76K to $77K range, Adziima added that such developments would ease risk-off pressure and boost capital flows into the market. Woofun AI analysis suggests that while markets remained flat at approximately $76,500 over the past 24 hours at the time of writing, the structural shift in US foreign policy could rapidly alter the liquidity landscape for Bitcoin and other digital assets.