The U.S. Supreme Court ruled that former President Donald Trump’s “Liberation Day” tariffs exceeded his authority, a decision that prompted a brief crypto rally before a broader market selloff. Cryptocurrency prices, including Bitcoin and Ethereum, tumbled Sunday night, continuing a trend of outflows from U.S. spot Bitcoin ETFs and a contraction in the supply of Tether’s USDT stablecoin.
The U.S. Supreme Court ruled 6-3 that former President Donald Trump’s sweeping “Liberation Day” tariffs exceeded his authority. Chief Justice Roberts stated the administration’s interpretation would represent an unprecedented expansion of presidential power over tariffs.
Trump called the ruling “anti-American” and announced a new 15% global tariff under a different legal authority. Bitcoin initially rallied but then fell alongside other major cryptocurrencies in a Sunday night selloff.
Markets had largely priced in the ruling, with prediction markets placing a high probability on an illegal verdict. The immediate crypto reaction was a brief pop that evaporated within 90 minutes, indicating the outcome was expected.
Analysts offered differing interpretations of the ruling’s market impact. Stephen Coltman of 21Shares noted a negative ruling could hurt the dollar while favoring crypto.
Matthew Sigel of VanEck argued that reduced tariff revenues could accelerate monetary debasement. Two potential crypto narratives emerged from the decision regarding short-term relief and long-term hedge characteristics.
The broader cryptocurrency market was in retreat, with Bitcoin trading near $66,400. Tether’s circulating USDT supply has fallen by nearly $4 billion from its recent peak.
U.S. spot Bitcoin ETFs saw nearly $300 million in net outflows last week. This occurred alongside disappointing U.S. economic data showing slowing growth and persistent inflation.
In other news, World Liberty Financial announced plans to tokenize interests in the Trump International Hotel & Resort via Securitize. Forty-one House Democrats raised concerns about the company potentially receiving a national bank license.
A significant technical error at the South Korean exchange Bithumb accidentally credited $43 billion in Bitcoin to user accounts. Regulators are now scrutinizing the incident.
