US Senate Crypto Hearing Derailed by Bizarre Outburst

A U.S. Senate hearing on cryptocurrency regulation took an unexpected turn when Republican Senator John Kennedy confronted former White House ethics lawyer Richard W. Painter over a months-old social media post. The exchange diverted attention from pressing legislative discussions, highlighting the fragile nature of bipartisan support for crypto in Congress.

The hearing, intended to address critical regulatory frameworks for digital assets, was overshadowed by Kennedy's interrogation about Painter's May 2025 tweet. The post had accused the crypto industry of "buying Congress" and singled out Senator Kirsten Gillibrand's $217,000 in crypto-related campaign donations.

Market observers note the incident underscores political tensions surrounding crypto legislation at a pivotal moment. Multiple bills are advancing through House committees while the Senate Banking Committee engages industry leaders to shape future policy.