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Mike Johnson now knows what Kevin McCarthy was dealing with.

At the new speakers behest, House Republicans today relied on Democratic votes to avert a government shutdown by passing legislation that contains neither budget cuts nor conservative policy priorities. The bill was a near replica of the funding measure that McCarthy pushed through the House earlier this falla supposed surrender to Democrats that prompted hard-liners in his party to toss him from the speakership.

Johnson is unlikely to suffer the same fate, at least not yet. But todays vote laid bare a reality thats become ever more apparent over the past year: Republicans may hold more seats than Democrats, but they dont control the House.

Under McCarthy and now Johnson, Republicans have been unable to pass just about any important legislation without significant help from Democrats. The three most consequential votes this year have been the spring budget deal that prevented a catastrophic U.S. debt default, Septembers stopgap spending bill that averted a shutdown, and todays proposal that keeps the government funded through early 2024. More Democrats than Republicans have voted for all three measures.

Read: Kevin McCarthy finally defies the right

GOP leaders have struggled to pass their own proposals on spending bills, leaving the party empty-handed in negotiations with the Democratic-led Senate and the Biden administration. Like McCarthy before him, Johnson pledged that Republicans would advance individual appropriations bills to counter the Senates plans to combine them into legislative packages that are too big for lawmakers to adequately review. But in the past week, hes been forced to scrap votes on two of these proposals because of Republican opposition.

McCarthy surrendered to Democrats in late September after his members refused to pass a temporary spending bill containing deep cuts and provisions to lock down the southern border. When it was his turn, Johnson didnt even bother to try a conservative approach. On Saturday, he unveiled a bill that maintains current spending levelsenacted by Democratic majorities in 2022for another two months. He did not include additional funding for either Israel or Ukraine, nor did he include any policy provisions that might turn off Democrats. Johnsons only wrinkle was to create two different deadlines for the next funding extension; funding for some departments will run out on January 19, while money for the rest of the government, including the Defense Department, will continue for another two weeks after that.

The Louisiana Republican said that the dual deadlines would spare Congress from having to consider a trillion-dollar omnibus spending package right before Christmas, as it has done repeatedly over the past several years. That is no way to run a railroad, Johnson said this morning on CNBC. This innovation prevents that from happening, and I think well have bipartisan agreement that that is a better way to do it.

Johnsons decision to avoid a partisan shutdown fight seemed to catch Democrats off guard. The White House initially slammed his proposal, but once party leaders on Capitol Hill realized that the spending bill contained no poison pills, they warmed to it. Democratic support became necessary once it was clear that Republicans would not be able to pass the measure on their own. Conservatives couldnt even agree to allow a floor vote on the proposal, forcing Johnson to bring it up using a procedure that ultimately required the bill to receive a two-thirds majority to pass.

Republican hard-liners have been no more willing to compromise under Johnson than they were under McCarthy. The conservative House Freedom Caucus, which initially suggested the two-deadline approach, ultimately opposed the bill anyway. It contains no spending reductions, no border security, and not a single meaningful win for the American People, the group said in a statement. While we remain committed to working with Speaker Johnson, we need bold change.

Buried in that final expression of support for Johnson was the first hint of a warning. Conservatives have given the untested speaker some leeway in his opening weeks. Even McCarthy received something of a grace period; when the speaker negotiated a debt-ceiling deal with President Joe Biden, conservatives voted against the bill but didnt try to overthrow him. Hard-liners havent threatened to remove Johnson, but that could change if he keeps relying on Democratic votes. When McCarthy caved to Democrats on spending for the second time, he lost his job a few days later.

The former speaker and his allies warned his GOP critics that his replacement would find themselves in the same position: managing a majority that isnt large enough to exert its will. Im one of the archconservatives, Johnson told reporters before the vote, trying to defend himself. I want to cut spending right now, and I would have liked to put policy riders on this. But when you have a three-vote majority, as we do right now, we dont have the votes to be able to advance that.

Read: We put sharp knives in the hands of children

Johnson has now used up one of his free passes. The question is how many more hell get. In the coming weeks, the speaker will have to navigate a series of fiscal fights over funding for Israel, Ukraine, and the southern border. The bill that the House passed today buys Congress another two months to hash out its differences over spending, but it doesnt resolve them. Johnson vowed not to agree to any more short-term extensions of federal funding, increasing the risk of a shutdown early next year. The speaker will also have to decide whether to press forward with an impeachment of Biden that could please conservatives but turn off Republicans in swing districts.

In the meantime, frustrated lawmakers from both parties are racing to leave Congress. Since McCarthys ouster, nine members, five of them Republicans, have announced their plans to resign or forgo reelection. Many more are likely to do so before the end of the year. After fewer than two terms in the House, GOP Representative Pat Fallon of Texas even considered returning to his old seat in the state legislature, which Republicans have long dominated, before changing his mind today. The frustration extended to other corners of the House GOP. We got nothing, another Texas Republican, Representative Chip Roy, lamented to reporters yesterday. He shouldnt have been surprised. At the moment, Republicans in the House have a majority in name only.

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Lectric Ebikes may be launching a new XP 4 this week, and it could change everything

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Lectric Ebikes may be launching a new XP 4 this week, and it could change everything

Lectric Ebikes appears to be preparing for a major new product launch, teasing what looks like the next evolution of its wildly popular folding fat tire electric bike. Based on the clues, it looks like a new Lectric XP 4 could be inbound.

In a social media post released over the weekend, the company shared a minimalist graphic reading “XP4” along with the message “Tune in 5.6.2025 9:30AM PT.” That date – this Tuesday – suggests we’re just hours away from the big reveal of the Lectric XP 4.

If true, this would mark the next generation of the most successful electric bike in the U.S. market. The current model, the Lectric XP 3.0, has become an icon of accessible, budget-friendly electric mobility. Starting at just $999, the XP 3.0 offers a foldable frame, fat tires, a 500W motor, a rear rack, lights, and hydraulic brakes – all packed into a highly shippable design that arrives fully assembled. It’s the kind of package that has helped Lectric claim the title of best-selling e-bike brand in the U.S. for several years in a row.

With the XP 3.0 still going strong, the teaser raises plenty of questions. Will the XP 4.0 be a modest update or a major leap forward? Could we see new features like torque-sensing pedal assist, a location tracking option, or upgraded performance? Or is Lectric preparing a more comfort-oriented variant, maybe even with upgraded suspension or even more accessories included standard?

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The teaser image, which features stylized stripes in grey, blue, and black, may hold some clues. One theory is that the colors represent new trim options or component upgrades. Another possibility is that Lectric is preparing multiple variants of the XP 4.0 – perhaps targeting commuters, adventurers, and off-road riders with purpose-built versions. We took the liberty of a bit of rampant speculation late last year, so perhaps that’s now worth a revisit.

At the same time though, Lectric’s penchant for launching new models at unbelievably affordable prices has never run up against such strong pricing headwinds as those posed by uncertainty in the current US-global trade war fueled by rapidly changing tariffs for imported goods.

lectric xp 3.0 hydraulic
Previous versions of the Lectric XP e-bike line have seen sky-high sales

Whatever the case, Lectric’s knack for surprising the industry with high-value, customer-focused e-bikes means expectations will be high. The brand has built a loyal following by delivering reliable performance at a price point that few can match, and any major update to the XP lineup is likely to ripple across the market.

As a young and energetic e-bike company, Lectric is also known for throwing impressive parties around the launch of new models. It looks like I may need to hop on a red-eye to Phoenix so I can see for myself – and so I can bring you all along, of course.

Be sure to tune in Tuesday at 9:30AM PT to see what Lectric has in store – and you can bet we’ll have all the details and first impressions as soon as they drop.

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Industry calls for urgent crypto law reforms after Australian election

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Industry calls for urgent crypto law reforms after Australian election

Industry calls for urgent crypto law reforms after Australian election

The Australian crypto industry has called on the newly reelected Labor government to urgently make digital asset legislation a top priority to ensure Australia doesn’t fall further behind global markets.

The incumbent Australian Labor Party was returned in a landslide on May 3, picking up 54.9% of the two-party-preferred vote, against the Liberal and National Parties on 45.1%. Both parties went to the election promising crypto law reform, but only the opposition pledged to deliver draft legislation within 100 days.

Joy Lam, Binance’s head of global regulatory and APAC legal, said the exchange has been consulting with Treasury officials since late 2023 about its proposed legislation, and it was now time for action.

“Timing is really quite critical now because obviously it’s something that has been discussed and kicked around for quite a few years,” she told Cointelegraph.

Coinbase managing director for APAC John O’Loghlen said the reelected Albanese Government has the “opportunity and the responsibility to move quickly on this issue” and called for a Crypto-Asset Taskforce to be established within its first 100 days “with the aim of bringing forward legislation that protects consumers, promotes innovation, and stops the exodus of talent and capital to other markets.”

Cryptocurrencies, Australia, Bitcoin Regulation
Reelected Prime Minister Anthony Albanese. Source: Anthony Albanese

BTC Markets CEO Caroline Bowler said that “beyond the political implications, this result sets the stage for meaningful progress in Australia’s approach to digital asset regulation.”

Lam noted that the UK released its draft regulations last week, stablecoin bills are moving forward in the US, and the EU has already implemented its MiCA legislation.

“So there’s a very clear shift. Everyone’s moving towards providing the regulatory framework that is needed for the industry to develop in a sustainable way. So time is really of the essence now.”

Draft crypto legislation within months

Treasurer Jim Chalmers’ office told Cointelegraph that exposure draft legislation would be released sometime this year for consultation, and any legislated reforms would be “phased in over time to minimize disruptions to existing businesses.”

Although the Treasury has draft legislation on “regulating digital asset platforms” and “payments system modernization” scheduled for release by the end of June, Lam isn’t confident. “I don’t know whether this quarter specifically is still sort of the timeline,” she said.

Related: Australian election will bring pro-crypto laws either way

While the ALP has been attacked by some over not taking any action in its first term in government, that may actually have resulted in a better outcome than legislation that took its cues from the approach of Joe Biden’s administration, which took a hard line on banks dealing with cryptocurrency and viewed most coins as securities. 

Industry figures report a noticeable evolution in the government’s approach to crypto between when proposals were first put out for consultation at the end of 2023 and when the Treasury released its much more positive “Statement on Developing an innovative Australian digital asset industry” in March this year.

Cryptocurrencies, Australia, Bitcoin Regulation
Australia Votes running tally on the Australian election. Source: ABC

The statement sets out key priorities, such as using the existing Australian Financial Services License (AFSL) regime to underpin the regulation of Digital Asset Platforms and payment stablecoins. It’s focused on the safe custody of client assets by centralized providers and sidesteps issues around decentralized finance platforms

Lam welcomed the use of the AFSL regime. “Obviously, we don’t need to reinvent the wheel,” she said. “It’s something that people know and understand. It’s a pretty sensible move, and it’s also going to be much easier for regulators.”

Tokenization and sandbox

The government will also review the Enhanced Regulatory Sandbox, which aims to provide space for innovative digital asset startups to grow free of red tape. The statement also highlights opportunities with tokenization.

Lam said the change in emphasis showed the government has been listening to the industry. 

“It reflects the industry feedback that they would have received in 2023 as a result of the consultation, as well as the changing landscape because obviously it’s been evolving pretty quickly internationally,” Lam said.

“They do have the benefit now of looking at what has worked and hasn’t worked in other jurisdictions, and really building on those lessons.”

Dea Markovy, policy director at Fireblocks, told Cointelegraph that “a lot of the groundwork and research is done” and it was looking broadly positive.

“Of course, a lot of details are still to come around Australia’s Digital Asset Platforms (DAPs) regime. What is significant here is the willingness of the Government to cut through the complexity and uncertainty on crypto intermediaries licensing.” 

The securities regulator ASIC released its own crypto regulations proposals (INFO 225) in December, and feedback from those consultations will help inform the government’s new legislation. 

“In essence, it details how different token issuances and crypto intermediation will fit into Australia’s existing securities legislation, providing for a transition period,” explained Markovy.

The draft guidance suggests NFTs, in-game assets and memecoins are not financial products — the local equivalent of a “security” — while a yield-bearing stablecoin or a gold-backed token probably are.

The Treasury statement also highlighted issues with debanking. Lam said that simply regulating the industry would go a long way toward solving the issue.

“What we really want from governments and regulators is that clean licensing framework, because that goes a long way to mitigating the risk and giving the banks the comfort that they need,” she said. “And then, there’s probably going to need to be some additional guidance given to banks.”

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

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At least 15 injured in ‘US-British’ strike on Yemeni capital, according to Houthi group

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At least 15 injured in 'US-British' strike on Yemeni capital, according to Houthi group

Yemen’s Houthi rebel group has said 15 people have been injured in “US-British” airstrikes in and around the capital Sanaa.

Most of those hurt were from the Shuub district, near the centre of the city, a statement from the health ministry said.

Another person was injured on the main airport road, the statement added.

It comes after Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against the Houthis and their Iranian “masters” following a missile attack by the group on Israel’s main international airport on Sunday morning.

It remains unclear whether the UK took part in the latest strikes and any role it may have played.

On 29 April, UK forces, the British government said, took part in a joint strike on “a Houthi military target in Yemen”.

“Careful intelligence analysis identified a cluster of buildings, used by the Houthis to manufacture drones of the type used to attack ships in the Red Sea and Gulf of Aden, located some fifteen miles south of Sanaa,” the British Ministry of Defence said in a previous statement.

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On Sunday, the militant group fired a missile at the Ben Gurion Airport, sparking panic among passengers in the terminal building.

The missile impact left a plume of smoke and briefly caused flights to be halted.

Four people were said to be injured, according to the country’s paramedic service.

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