Trump’s Trade War Tariffs Have Crashed Crypto Markets

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• Cryptocurrencies: 10.99M+

• Exchanges: 785

• Market Cap: $3.13T (-1.56%)

• 24h Volume: $128.08B (+0.52%)

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• ETH Gas Price: 0.94 Gwei

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💹 Market Highlights:

• Total DeFi Volume: $8.05B (6.28% of market volume)

• Stablecoins Volume: $118.35B (92.4% of market volume)

• Coin with Highest % Change: $YE (+128.80%)

📈 Preview On Today’s News:

1. - Trump’s Trade War Tariffs Have Crashed Crypto Markets

2. - Tornado Cash Developer Alexey Pertsev Released on House Arrest Amid Appeal 

3. - Japan Cracks Down on Unregistered Crypto Exchanges 

Keep reading below for more!

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Today’s News:

1)

Trump’s Trade War Tariffs Have Crashed Crypto Markets

Former U.S. President Donald Trump’s aggressive trade war strategy is escalating, impacting global risk markets, including cryptocurrencies. Trump is pressuring trade-deficit countries with increased tariffs, using a hardline "take it or leave it" approach in negotiations. Japan has become a key focus, with its Prime Minister committing to $1 trillion in U.S. investments and doubling defense spending by 2027. Despite these efforts, Trump remains firm on imposing mutual tariffs, leading to uncertainty in financial markets, including a decline in Bitcoin.

• Trump's intensified trade war tactics, particularly targeting Japan, are adding pressure to global financial markets, causing turbulence in cryptocurrency valuations.

• Japan has pledged significant economic and defense commitments to the U.S., but Trump's persistence on additional tariffs continues to fuel uncertainty in trade and crypto markets.

2)

Tornado Cash Developer Alexey Pertsev Released on House Arrest Amid Appeal 

Alexey Pertsev, a developer of Tornado Cash, has been released from prison after three years in pre-trial detention and will now serve electronic monitoring until his trial. Pertsev, who was convicted by a Dutch court last May for laundering over $1 billion through Tornado Cash and sentenced to five years in prison, is actively appealing his conviction. His release follows a November ruling by a U.S. federal appeals court that found sanctions against Tornado Cash unlawful. While out of prison, Pertsev aims to strengthen his legal defense and continue his fight for justice, urging supporters to help fund his appeal.

• Alexey Pertsev, sentenced to five years for money laundering, has been released from prison to serve house arrest while appealing his conviction.

• His release comes after a U.S. court ruled against sanctions on Tornado Cash, giving him a better opportunity to fight his case.

3)

Japan Cracks Down on Unregistered Crypto Exchanges 

Japan's Financial Services Agency (FSA) has mandated the removal of several unregistered cryptocurrency exchanges, including KuCoin, Bitget, and Bybit, from local app stores in a move to tighten regulatory oversight. Apple promptly complied with the request, but Google has yet to take action. The affected exchanges had previously received warnings for operating without proper registration, and their removal means new users in Japan can no longer download their apps. This aligns with Japan’s cautious stance on cryptocurrency regulations, aiming to safeguard investors while maintaining stricter control over the financial market.

• Japan's FSA enforced the removal of unregistered crypto exchanges from app stores, impacting platforms like KuCoin, Bitget, and Bybit, with Apple complying but Google yet to act.

• This move reflects Japan's firm regulatory approach to crypto, ensuring investor protection while distinguishing its policies from more lenient markets like Hong Kong.

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4)

Poland’s Central Bank Rejects Bitcoin as Reserve Asset 

The National Bank of Poland (NBP) has ruled out Bitcoin (BTC) as part of its currency reserves, citing security concerns and volatility. NBP President Adam Glapiński reaffirmed that the bank prioritizes absolute security in reserve assets, stating that Bitcoin's unpredictable nature makes it unsuitable. Poland’s reserves primarily consist of gold, U.S. dollars, and euros, with the value of its gold holdings increasing amid global economic uncertainties. The NBP's stance aligns with its historical position, as it previously warned in 2017 about the risks of virtual currencies, including theft, lack of guarantees, and extreme price fluctuations.

• The National Bank of Poland rejects Bitcoin for reserves, emphasizing security concerns and its volatile nature, favoring gold, U.S. dollars, and euros instead.

• Poland’s position on Bitcoin remains consistent with its 2017 warnings about cryptocurrency risks, including theft, lack of guarantees, and price instability.

5)

CFTC Engages Crypto Industry in Regulatory Overhaul 

The Commodity Futures Trading Commission (CFTC) has launched a forum with top crypto industry CEOs to gather input on a new digital asset pilot program focused on "tokenized non-cash collateral," such as stablecoins. The initiative marks a regulatory shift under acting Chairman Caroline Pham, who was appointed in January 2025, with the goal of fostering industry collaboration and replacing “regulation by enforcement” with a focus on fraud prevention and consumer protection. The CFTC’s restructured enforcement divisions will now concentrate on two key areas: retail fraud and complex asset class fraud.

• The CFTC’s new digital asset pilot program includes stablecoins and will involve input from leading crypto CEOs, signaling a shift towards regulatory cooperation.

• Acting Chairman Caroline Pham has overhauled the CFTC’s approach, ending “regulation by enforcement” and refocusing efforts on fraud prevention and consumer protection.

6)

Missouri Lawmaker Pushes for State Bitcoin Reserve Fund 

Missouri State Representative Ben Keathley has introduced House Bill 1217, proposing the creation of a Bitcoin Strategic Reserve Fund to diversify the state's investments. The bill, filed on February 6, would enable the state treasurer to receive, invest, and hold Bitcoin under specific conditions. It also mandates that all Missouri government entities accept cryptocurrency for approved payments like taxes, fees, and fines, with transaction costs covered by the payer. Additionally, any Bitcoin received must be held for at least five years, and the fund can accept Bitcoin donations from residents and government entities. Missouri's move aligns with a broader national trend, as 17 states are considering similar legislation, with Utah’s House Bill 230 already progressing through the legislative process.

• Missouri’s House Bill 1217 seeks to establish a Bitcoin reserve fund and mandates cryptocurrency acceptance for certain government payments.

• This initiative is part of a wider movement, with 17 states exploring Bitcoin reserves, including Utah, whose similar bill has advanced in the legislative process.

7)

Celsius Network’s Former CEO Seeks Sentencing Delay in $48M Fraud Case 

Alex Mashinsky, the former CEO of Celsius Network, has requested a one-month delay in his sentencing after pleading guilty to multiple fraud charges, including deceiving investors and manipulating the CEL token price. His legal team argues they need more time to prepare a detailed sentencing plea, while federal prosecutors oppose the request, agreeing only to a one-week extension. Mashinsky, who was arrested in July 2023, faces up to 30 years in prison and must return $48 million. His case is part of a broader crackdown on crypto fraud, with regulators increasingly targeting executives for misleading investors and manipulating financial markets.

• Alex Mashinsky, who pleaded guilty to fraud charges involving investor deception and market manipulation, seeks a one-month sentencing delay, facing opposition from prosecutors.

• He faces up to 30 years in prison and must return $48 million, as regulators intensify efforts to hold crypto executives accountable for financial misconduct.

8)

Citigroup Alumni-Founded Startup to Launch XRP-Backed Securities

Receipts Depositary Corp. (RDC), a startup founded by former Citigroup executives, plans to launch XRP-backed securities, expanding its existing lineup of Bitcoin- and Ethereum-backed offerings. The product will allow institutional investors to access XRP through U.S. regulated market infrastructure, using depositary receipts similar to those representing foreign stocks on U.S. exchanges. Unlike ETFs, these receipts provide direct ownership of XRP and will be available only to qualified institutional buyers through transactions exempt from SEC registration. The securities will be cleared by the Depository Trust Company (DTC), ensuring compliance with established financial structures.

• RDC’s XRP-backed securities will grant institutional investors access to XRP through a U.S.-regulated framework, similar to depositary receipts used for foreign stocks.

• The offering will be available exclusively to qualified institutional buyers, bypassing SEC registration requirements, and will be cleared by the Depository Trust Company (DTC).

9)

Cardano Plunges as Market Liquidations Hit $240M 

Cardano (ADA) faced a sharp decline, dropping below $0.71 as part of a broader crypto market downturn, with total liquidations surpassing $240 million in 24 hours. ADA’s price drop follows a decrease in investor interest, a significant decline in decentralized exchange (DEX) trading volume, and a reduction in the network’s total value locked (TVL). Additionally, large ADA holders (whales) offloaded 300 million tokens, contributing to the negative sentiment. The overall market correction, driven by Bitcoin’s drop below key support levels and macroeconomic pressures, led to widespread liquidations affecting top cryptocurrencies, including BTC, ETH, and BNB. Analysts are now watching ADA’s RSI levels and key resistance points for potential signs of recovery.

• Cardano’s price dropped below $0.71 amid a $240 million market liquidation event, fueled by declining investor interest, reduced trading volume, and whale sell-offs.

• The broader crypto downturn, led by Bitcoin and Ethereum losses, triggered mass liquidations, with traders closely monitoring ADA’s RSI and resistance levels for signs of a potential rebound.

10)

CFTC Reevaluates Prediction Market Regulations Amid Legal Uncertainty 

The U.S. Commodity Futures Trading Commission (CFTC) is revisiting its regulatory approach to prediction markets, planning a public discussion to address the legal ambiguities surrounding these platforms. Acting Chairman Caroline Pham is leading the effort, emphasizing the need for a revised framework that fosters market growth while preventing fraud. Historically, the CFTC has taken a strict stance against platforms like Polymarket and Kalshi, but recent legal battles and increasing trading volumes—such as Polymarket’s $533 million surge in September 2024—have prompted a reassessment. A Washington, D.C. roundtable with industry experts and legal representatives will explore potential regulatory changes, balancing market expansion with consumer protection.

• The CFTC is reevaluating its oversight of prediction markets, with Acting Chairman Caroline Pham advocating for clearer regulations to promote growth while ensuring legal clarity.

• A roundtable discussion in Washington, D.C. will bring together industry experts to review past enforcement actions and explore potential changes to improve regulatory oversight.

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