Launchy Regulatory Roundup #34 - Trump vs Powell: Rate Fight, Firing Threats, and Stablecoin Moves

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Welcome to our 34th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

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Trump’s team is taking bold swings at the Fed while trying to fast-track pro-crypto reforms. Meanwhile, global regulators can’t seem to decide if they want to embrace the industry or smother it in paperwork.

In Today's Edition:

• Headline: Trump vs Powell: Rate Fight, Firing Threats, and Stablecoin Moves 🥊 

• Global Legal Roundup: 18 Lawsuits Against SEC Paused, Crypto Roundtable 🛑 

• Case Study: Crypto’s Banking Woes Persist Despite Policy Wins 🔎 

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HEADLINE

Trump vs Powell: Rate Fight, Firing Threats, and Stablecoin Moves

State of play: Tensions between Donald Trump and Fed Chair Jerome Powell have escalated, with Trump openly considering firing Powell over his refusal to cut interest rates.

• White House adviser Kevin Hassett confirmed the option is under review, signalling a serious challenge to the Fed’s independence.

• Trump accused Powell of "playing politics" and claimed he could remove him quickly.

• Despite the political pressure, Powell insists he won’t step down and intends to serve his full term through 2026.

Amid the tension, Powell reiterated the need for a clear legal framework for stablecoins, stressing their growing mainstream use and the importance of consumer protections and federal oversight.

• Powell noted that past efforts to pass such legislation fell short but expressed optimism that bipartisan momentum is building.

• A stablecoin bill is nearing completion, backed by the current administration’s pro-crypto stance and the presidential advisory council on digital assets.

• Powell underscored that without clear regulations, the growth of stablecoins could pose risks to both consumers and the broader financial system.

What’s Next: Trump may push further on removing Powell, depending on legal outcomes and market reaction. Meanwhile, Congress could finalize a stablecoin bill in the coming months, setting the stage for new federal crypto regulations.

Why it Matters: Firing Powell would threaten the Fed’s independence and could rattle global markets. At the same time, clear stablecoin laws could boost US leadership in crypto and bring legitimacy to dollar-backed digital assets.

Our Take: Stability in both monetary leadership and digital asset regulation will shape investor confidence ahead of 2026.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 Hidden Road secures FINRA registration.

• 🇺🇲 US court pauses 18-state lawsuit against SEC.

• 🇺🇲 Arizona crypto reserve bill passes House committee.

• 🇺🇲 Court grants 60-day pause of SEC, Ripple appeals case.

• 🇺🇲 Oregon targets Coinbase after SEC drops its federal lawsuit.

• 🇺🇲 Anchorage Digital faces scrutiny from US Homeland Security.

• 🇺🇲 SEC's next roundtable to discuss crypto custody with insiders.

• 🇺🇲 MoonPay CEO calls on Congress to keep state authority over stablecoins.

• 🇺🇲 Wyoming commission floats whether stablecoin is 'covered' by SEC rules.

• 🇵🇦 Panama's capital to accept crypto for taxes, municipal fees.

Europe:

• 🇩🇪 Ethena Labs exits German market following agreement with BaFin.

• 🇸🇮 Slovenia’s finance ministry floats 25% tax on crypto transactions.

• 🇪🇺 Google to enforce MiCA rules for crypto ads in Europe starting April 23.

• 🇮🇹 Italy finance minister warns US stablecoins pose bigger threat than tariffs.

APAC:

• 🇰🇷 South Korea blocks 14 crypto exchanges on Apple Store.

• 🇨🇳 China selling seized crypto to top up coffers as economy slows.

• 🇰🇬 Kyrgyzstan’s president signs CBDC law giving ‘digital som’ legal status.

CASE STUDY

Crypto’s Banking Woes Persist Despite Policy Wins

Credits to Aaron Wood & Cointelegraph for the original article.

State of play: Despite recent regulatory shifts in the US and Australia, the crypto industry still faces widespread debanking, where banks refuse to serve crypto firms due to perceived risks.

• In the US, Trump’s administration has reversed some restrictive policies, like Staff Accounting Bulletin 121, and appointed a crypto-friendly OCC chief.

Yet, major roadblocks remain, especially at the Fed, where leadership hasn’t changed. Australia is pushing for new laws to give banks clarity and reduce risk aversion, while in Canada, the situation appears stagnant with no clear relief in sight.

• Critics argue the crypto industry is exaggerating the issue for favourable regulation, but many firms continue to rely on unstable banking workarounds like stablecoins and smaller institutions.

Our Take: These patchy solutions raise costs and risks, underscoring the need for more consistent access to banking to support long-term growth in the digital asset sector.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Nic Carter read about the death of Signature Bank.

• Coincenter’s read on 3 key cases to stop regulation by prosecution.

• Jake Chervinsky’s thread on the new crypto safe harbor proposal to the SEC.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.