By JOEY CAPPELLETTI, MARY CLARE JALONICK and ALAN SUDERMAN, Associated Press

WASHINGTON (AP) — The Senate is expected to approve legislation Tuesday that would regulate a form of cryptocurrency known as stablecoins, the first of what is expected to be a wave of crypto legislation from Congress that the industry hopes will bolster its legitimacy and reassure consumers.

The fast-moving legislation, which will be sent to the House for potential revisions, comes on the heels of a 2024 campaign cycle in which the crypto industry ranked among the top political spenders in the country, underscoring its growing influence in Washington and beyond.

Eighteen Democratic senators have shown support for the legislation as it has advanced, siding with the Republican majority in the 53-47 Senate. If passed, it would become the second major bipartisan bill to advance through the Senate this year, following the Laken Riley Act on immigration enforcement in January.

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Still, most Democrats oppose the bill. They have raised concerns that the measure does little to address President Donald Trump’s personal financial interests in the crypto space.

“We weren’t able to include certainly everything we would have wanted, but it was a good bipartisan effort,” said Sen. Angela Alsobrooks, D-Md., on Monday. She added, “This is an unregulated area that will now be regulated.”

Known as the GENIUS Act, the bill would establish guardrails and consumer protections for stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. The acronym stands for “Guiding and Establishing National Innovation for U.S. Stablecoins.”

It’s expected to pass Tuesday, since it only requires a simple majority vote — and it already cleared its biggest procedural hurdle last week in a 68-30 vote. But the bill has faced more resistance than initially expected.

There is a provision in the bill that bans members of Congress and their families from profiting off stablecoins. But that prohibition does not extend to the president and his family, even as Trump builds a crypto empire from the White House.

Last month, the Republican president hosted a private dinner at his golf club in Virginia with top investors in a Trump-branded meme coin. His family holds a significant stake in World Liberty Financial, a crypto project that launched its own stablecoin, USD1.

Trump reported earning $57.35 million from token sales at World Liberty Financial in 2024, according to a public financial disclosure released Friday. A meme coin linked to him has generated an estimated $320 million in fees, though the earnings are split among multiple investors.

The administration is broadly supportive of crypto’s growth and its integration into the economy. Treasury Secretary Scott Bessent last week said the legislation could help push the U.S. stablecoin market beyond $2 trillion by the end of 2028.

Brian Armstrong, CEO of Coinbase — the nation’s largest crypto exchange and a major advocate for the bill — has met with Trump and praised his early moves on crypto. This past weekend, Coinbase was among the more prominent brands that sponsored a parade in Washington commemorating the Army’s 250th anniversary — an event that coincided with Trump’s 79th birthday.

But the crypto industry emphasizes that they view the legislative effort as bipartisan, pointing to champions on each side of the aisle.

“The GENIUS Act will be the most significant digital assets legislation ever to pass the U.S. Senate,” Senate Banking Committee Chair Tim Scott, R-S.C., said ahead of a key vote last week. “It’s the product of months of bipartisan work.”

The bill did hit one rough patch in early May, when a bloc of Senate Democrats who had previously supported the bill reversed course and voted to block it from advancing. That prompted new negotiations involving Senate Republicans, Democrats and the White House, which ultimately produced the compromise version expected to win passage Tuesday.

“There were many, many changes that were made. And ultimately, it’s a much better deal because we were all at the table,” Alsobrooks said.

Still, the bill leaves unresolved concerns over presidential conflicts of interest — an issue that remains a source of tension within the Democratic caucus.

Sen. Elizabeth Warren, D-Mass., has been among the most outspoken as the ranking member on the Senate Banking Committee, warning that the bill creates a “super highway” for Trump corruption. She has also warned that the bill would allow major technology companies, such as Amazon and Meta, to launch their own stablecoins.

If the stablecoin legislation passes the Senate on Tuesday, it still faces several hurdles before reaching the president’s desk. It must clear the narrowly held Republican majority in the House, where lawmakers may try to attach a broader market structure bill — sweeping legislation that could make passage through the Senate more difficult.

Trump has said he wants stablecoin legislation on his desk before Congress breaks for its August recess, now just under 50 days away.

By MICHAEL R. SISAK and LARRY NEUMEISTER, Associated Press

NEW YORK (AP) — Former U.S. Sen. Bob Menendez arrived at a federal prison on Tuesday to begin serving an 11-year sentence for accepting bribes of gold and cash and acting as an agent of Egypt. The New Jersey Democrat has been mocked for the crimes as “Gold Bar Bob,” according to his own lawyer.

The federal Bureau of Prisons confirmed that Menendez was in custody at the Federal Correctional Institution, Schuylkill in Minersville, Pennsylvania. The facility has a medium-security prison and a minimum-security prison camp. Given the white-collar nature of his crimes, it’s likely he’ll end up in the camp.

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The prison is about 118 miles west of New York City. It’s home to about 1,200 inmates, including ex-New York City organized crime boss James Coonan and former gas station owner Gurmeet Singh Dhinsa, whom the New York Post dubbed “Gas-Station Gotti” for his ruthless, violent ways.

Menendez, 71, maintains his innocence. Last week, a federal appeals court rejected his last-ditch effort to remain free on bail while he fights to get his bribery conviction overturned. A three-judge panel on the 2nd U.S. Circuit Court of Appeals denied his bail motion.

Pleading for leniency, Menendez told a judge at his sentencing in January: “I am far from a perfect man. I have made more than my share of mistakes and bad decisions. I’ve done far more good than bad.”

Menendez has also appeared to be angling for a pardon from President Donald Trump, aligning himself with the Republican’s criticisms of the judicial system, particularly in New York City.

“This process is political and it’s corrupted to the core. I hope President Trump cleans up the cesspool and restores the integrity to the system,” Menendez told reporters after his January sentencing.

In posts Tuesday on the social platform X that were later deleted, Menendez criticized prosecutors as politically motivated and opposed to his foreign policy views and praised Trump for “rising above the law fare.”

Menendez resigned last year after he was convicted of selling his clout for bribes. FBI agents found $480,000 in cash in his home, some of it stuffed inside boots and jacket pockets, along with gold bars worth an estimated $150,000 and a luxury convertible in the garage.

In exchange, prosecutors said, Menendez performed corrupt favors for New Jersey business owners, including protecting them from criminal investigations, helping in business deals with foreign powers and meeting with Egyptian intelligence officials before helping Egypt access $300 million in U.S. military aid.

Menendez, who once chaired the Senate Foreign Relations Committee, resigned a month after his conviction. He had been in the Senate since 2006.

Two business owners were also convicted last year along with Menendez.

His wife, Nadine Menendez, was convicted in April of teaming up with her husband to accept bribes from the business owners. Her sentencing is scheduled for Sept. 11.

At his sentencing, Menendez’s lawyers described how the son of Cuban immigrants emerged from poverty to become “the epitome of the American Dream” — rising from mayor of Union City, New Jersey, to decades in Congress — before his conviction “rendered him a national punchline.”

“Despite his decades of service, he is now known more widely as Gold Bar Bob,” defense lawyer Adam Fee told the judge.

Associated Press reporter Michael Catalini in Trenton, New Jersey, contributed to this report.

By MICHELLE CHAPMAN, Associated Press Business Writer

Kraft Heinz will be pulling certain artificial dyes from its U.S. products starting in 2027 and will no longer roll out new products with the dyes.

The move comes nearly two months after U.S. health officials said that they would urge foodmakers to phase out petroleum-based artificial colors in the nation’s food supply.

Kraft Heinz said Tuesday that almost 90% of its U.S. products already don’t contain food, drug & cosmetic colors, but that the products that do still use the dyes will have them removed by the end of 2027. FD&C colors are synthetic additives that are approved by the U.S. Food and Drug Administration for use in food, drugs and cosmetics.

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Kraft Heinz said that many of its U.S. products that still use the FD&C colors are in its beverage and desserts categories, including certain products sold under brands including Crystal Light, Kool Aid, Jell-O and Jet Puffed.

The company said that it will instead use natural colors for the products.

“The vast majority of our products use natural or no colors, and we’ve been on a journey to reduce our use of FD&C colors across the remainder of our portfolio,” Pedro Navio, North America President at Kraft Heinz, said in a statement.

Kraft Heinz stripped artificial colors, flavors and preservatives from its macaroni and cheese in 2016 and said it has never used artificial dyes in its ketchup.

The company plans to work with licensees of its brands to encourage them to remove the dyes.

In April Food and Drug Administration Commissioner Marty Makary said at a news conference that the agency would take steps to eliminate the synthetic dyes by the end of 2026, largely by relying on voluntary efforts from the food industry.

Health advocates have long called for the removal of artificial dyes from foods, citing mixed studies indicating they can cause neurobehavioral problems, including hyperactivity and attention issues, in some children. The FDA has maintained that the approved dyes are safe and that “the totality of scientific evidence shows that most children have no adverse effects when consuming foods containing color additives.”

The FDA currently allows 36 food color additives, including eight synthetic dyes. In January, the agency announced that the dye known as Red 3 — used in candies, cakes and some medications — would be banned in food by 2027 because it caused cancer in laboratory rats.

Artificial dyes are used widely in U.S. foods. In Canada and in Europe — where synthetic colors are required to carry warning labels — manufacturers mostly use natural substitutes. Several states, including California and West Virginia, have passed laws restricting the use of artificial colors in foods.

Many U.S. food companies are already reformulating their foods, according to Sensient Colors, one of the world’s largest producers of food dyes and flavorings. In place of synthetic dyes, foodmakers can use natural hues made from beets, algae and crushed insects and pigments from purple sweet potatoes, radishes and red cabbage.

By CHRISTOPHER RUGABER and ANNE D’INNOCENZIO, Associated Press Economics Writer

WASHINGTON (AP) — Retail sales fell sharply in May as consumers pulled back after a sharp increase in spending in March to get ahead of President Donald Trump’s sweeping tariffs on nearly all imports.

Sales at retail stores and restaurants dropped 0.9% in May, the Commerce Department said Tuesday, after a decline of 0.1% in April. The figure was pulled down by a steep drop in auto sales, after Americans ramped up their car-buying in March to get ahead of Trump’s 25% duty on imported cars and car parts. Excluding autos, sales fell 0.3%.

The sales drop comes after sharp declines in consumer confidence this year. Still, inflation has cooled steadily and unemployment remains low, which could fuel steady spending in the coming months, as the economy has remained mostly solid.

A category of sales that excludes volatile sectors such as gas, cars, and restaurants rose last month by 0.4%, a sign that consumers are still spending on some discretionary items.

FILE – Shoppers pass a Victoria’s Secret store at a shopping mall in Scranton, Pa., May 3, 2021. (AP Photo/Ted Shaffrey, file)

Yet many categories saw sharp declines. Car sales plunged 3.5%, while sales at home and garden centers dropped 2.7%. They fell 0.6% at electronics and appliance stores and 0.7% at grocery stores. There were some bright spots: Sales rose 0.9% at online retailers, 0.8% at clothing stores, and 1.2% at furniture stores.

Sales at restaurants and bars, a closely watched indicator of discretionary spending, fell 0.9% in May, though that followed a solid gain of 0.8% in April.

It is a difficult time for retailers, many of whom built up large inventories this spring after Trump warned that he would impose widespread import taxes. Traffic at the port in Los Angeles has fallen sharply in recent weeks, suggesting fewer goods are entering the United States.

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Some consumer products companies say they are seeing the impact of tariffs on their own costs and sales.

Paul Cosaro, CEO of Picnic Time, Inc, which makes picnic accessories like baskets, coolers, and folding chairs, said that orders from retailers are down as much as 40% this summer compared with a year ago. His company sells to a variety of stores like Target and Williams-Sonoma.

Cosaro noted that some stores have been cautious because they’re not sure how shoppers will react to higher prices. Some cancelled orders because Cosaro couldn’t tell them how much the new prices would be due to all the uncertainty. Roughly, 80% of the company’s goods are made in China, with the rest in India and Vietnam.

The company, founded roughly 40 years ago and based in Moorpark, California, was forced to raise prices on average from 11% to 14% for this summer selling season, Cosaro said.

The company has implemented a hiring freeze because of all the extra tariff costs, he added. So far this year the company, which employs from 70 to 100 people, has had to pay $1 million in tariffs. A year ago at this time, the bill was a third of that amount.

D’Innocenzio reported from New York.