The film tax credit primary.

Cortez Masto and the Crypto Kids. In yesterday's newsletter I riffed on the Trump-backed crypto bill the Senate Banking Committee, of which Nevada Democratic Sen. Catherine Cortez Masto is a member, was about to vote on. Later in the day the committee ended up approving the bill and sending it to the Senate floor, with support from all the committee's Republicans and two of its Democrats, Arizona's Ruben Gallegos and Maryland's Angela Alsobrooks.

Cortez Masto issued a statement explaining her committee vote against the legislation, in which she also indicated a desire to ultimately vote for the bill that is the legislative cornerstone of the Trump-crypto agenda when it gets to the Senate floor:

“It’s clear we need to pass market structure legislation, and I’ve worked for months with colleagues on both sides of the aisle to negotiate a bill that provides clear rules of the road for a growing industry. But the current version of the CLARITY Act undermines law enforcement’s ability to trace illicit finance and recover victims’ money, while at the same time creating a more challenging environment to prosecute criminals for knowingly transmitting illicit funds. It’s disappointing that my commonsense fixes discussed among stakeholders and supported by police and prosecutors nationwide weren’t adopted today. But I’m committed to finding solutions that allow us to take on bad actors – the criminals not the everyday coders – while giving the millions of U.S. crypto users the certainty they need.” 

Cortez Masto, along with Democrats Mark Warner of Virginia and Raphael Warnock of Georgia, also voted with Gallegos and Alsobrooks to support a bunch of amendments sponsored by committee Republicans.

“At least eight Democratic votes will be needed to pass the bill on the Senate floor,” a Washington lobbyist for an investment firm wrote after the vote, The Hill reported. “Several of the necessary votes will have to come from some of the committee Democrats who voted ‘no’ today.”

Cortez Masto never passes up an opportunity to lean in to her law & order branding. And the law enforcement emphasis reflected in her unsuccessful amendments are shared by other Democrats.

But most opponents of the legislation have much broader concerns.

Elizabeth Warren, the ranking Democrat on the Banking Committee, is leading the Senate's opposition to the Trump- crypto agenda. Here's an excerpt from remarks she made at the start of yesterday's hearing:

First, the draft in front of us would blow a hole in our securities laws that have protected investors since 1929. Most Americans don’t want their pensions at risk so that a few crypto billionaires can juice their own profits.

Second, this bill declares open season on defrauding American consumers who use crypto. The bill wipes out a huge number of state-level protections against fraud.

Third, the bill puts our financial system at risk by repeating the mistakes of 2008—letting the banks load up on risky debts, letting them scrape off the profits, and then when it all comes crashing down, come back to the American taxpayer for a bailout.

Fourth, the bill puts our national security at greater risk. Just 3 days ago, 3 days ago, the Treasury Department issued an alert warning that Iran is exploiting crypto businesses to move their money around. Multiple public analyses documents that drug cartels are shifting their money laundering to crypto, and, quote, the “cops can’t keep up.”

And, finally, the bill doesn’t lift even the tiniest finger to address the Trump Administration’s crypto-related corruption. Since taking office last year, President Trump and his family have amassed a staggering $1.4 billion in gains from crypto deals alone. No President—and no one in Congress—should be allowed to profit from crypto at the same time that they are enforcing rules to regulate it. This kind of corruption undermines our democracy—and it undermines the legitimacy of the crypto industry. It will keep right on growing if Congress fails to rein it in.

As I noted in Thursday's newsletter, every Democrat in Nevada's congressional delegation has supported one portion or another of the Trump-crypto agenda. If the crypto industry finds its eight Democratic senators to vote for the Trump-crypto bill, I'd be surprised if Cortez Masto, and Jacky Rosen for that matter, aren't in the group. (And I'll be delighted to be wrong.)

Nevada is sometimes referred to as ground zero for the mortgage-backed derivatives fiasco and accompanying 2008 global financial crisis that Warren referred to and that blew up the economy nearly 20 years ago. Members of Congress from Nevada should be especially wary of approving weak federal regulations that promote the growth of sketchy financial products because an industry told them to.

But to reiterate another thing I noted yesterday, the crypto industry raised more campaign money than any other industry in the 2024 campaign cycle, scaring the heebie-jeebies out of Democrats in the process. Crypto's campaign attack spending is credited with playing a huge role in defeating Democratic Sen. Sherrod Brown in Ohio in 2024. This year, our bazillionaires are financing not only crypto PACs but AI PACs, amassing perhaps the most intimidating combined campaign financing threat to politicians in the history of this or any other nation. There is every reason to believe they'll do it again in 2028, and beyond.

Finally — and sadly — the answer is no: legislative coddling of the digital currency industry will not make life more affordable.

IN NEVADA CURRENT

The film tax credit thing is the issue the challenger emphasizes. And the accompanying endorsements from building trades unions, whose leaders evidently cannot overcome their loss, underscore the point. But given his endorsements from well over a dozen cop or cop-adjacent unions and organizations, I'm guessing the fact that the incumbent is the first formerly incarcerated person ever elected to the Nevada Legislature has something to do with it. Michael Lyle reports: Backed by pro-film subsidy groups, carpenter challenges progressive Assembly Democratic incumbent

For the birds! And the other critters, and so much more. "This is a tax we currently pay, and will continue to pay. Voting yes would keep the funds in Henderson and maintain this budget for another 30 years. If the measure fails, critical funding for our parks and community services would be redirected outside the city." Sensible medicine in this guest column from the Red Rock Audubon Society's Morrigan DeVito: Henderson parks and recreation opportunities must be sustained

Also... 

Trump elections order would create chaotic ‘nightmare,’ Democrats and allies tell court. Chaotic? Trump? You don't say. Via the D.C. bureau.

The redistricting frenzy is scrambling the midterm elections. Here’s where things stand now. If it turns out the Supreme Court and the irrational exuberance it has inspired among Southern Republican state legislators doesn't steal the midterms for Trump, you can't say they didn't try. Via Stateline.

 Good Luck