Trump Moves On Fed As Italy Warns Crypto Influencers In New Global Shakeup

TLDR

• DOJ investigates Powell for fund misuse in office renovations, which he says is politically motivated.
• Coinbase halts peso services in Argentina due to operational challenges in the local market.
• Italy’s CONSOB warns influencers of legal risk in promoting crypto, even with disclaimers.
• Wyoming launches the Frontier Stable Token (FRNT) on Solana with availability on Kraken.

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President Donald Trump’s move to direct a criminal investigation into Federal Reserve Chairman Jerome Powell has drawn international attention, raising concerns about political pressure on central banking. Meanwhile, in global crypto markets, Coinbase halts fiat services in Argentina, NFT Paris is canceled amid poor market conditions, and Wyoming introduces its own stablecoin. Financial regulators in Italy caution influencers over crypto promotion as Moldova begins aligning with EU crypto rules.

Trump Orders Criminal Probe into Fed Chair Powell

The US Department of Justice has opened a criminal investigation into Federal Reserve Chairman Jerome Powell, acting on President Donald Trump’s directive. The case concerns alleged misuse of funds during renovations of Federal Reserve buildings. Powell has denied any wrongdoing and called the investigation politically motivated.

He said, “The charges are a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” The DOJ has not yet filed formal charges, but the move follows a history of Trump criticizing Powell over interest rate decisions.

Trump had earlier visited the renovation sites, claiming the project was over budget and suggesting Powell should be held accountable. The investigation has raised questions about political interference in the independence of the US central bank.

Coinbase Pauses Argentine Peso Services

Coinbase has temporarily halted its fiat services in Argentina, affecting users’ ability to buy or sell crypto with pesos. Users will also lose access to peso withdrawals from their local bank accounts by the end of January.

The exchange described the move as a “deliberate pause” to review its operations in the country. A Coinbase spokesperson said the decision was due to the complexity of working with Argentina’s volatile financial system. Ana Gabriela Ojeda, a Latin American crypto analyst, explained that such pauses reflect operational challenges rather than any anti-crypto stance.

Coinbase had entered Argentina only a year ago. The decision marks another adjustment by international crypto platforms facing difficulty in inflation-prone economies.

NFT Paris Cancelled as Market Declines

NFT Paris, a major event focused on non-fungible tokens, has been canceled due to market downturns. Organizers confirmed that even after cutting costs, the event was no longer financially feasible.

Originally planned for February, NFT Paris was expected to draw major industry figures. However, the NFT market remains weak, with CoinGecko data showing daily trading volumes under $4 million and total market cap just over $3 billion. Ticket holders will receive refunds, but no new dates have been confirmed for future events.

Italy and Moldova Strengthen Crypto Oversight

Italy’s securities regulator, CONSOB, has issued a clear warning to financial influencers. It said promoting crypto or similar volatile assets comes with legal responsibilities, even if disclaimers like “not financial advice” are used.

The European Securities and Markets Authority supported this position, stating that influencers must follow advertising laws. “Promoting a financial product or service isn’t like promoting shoes or watches,” said CONSOB in a statement.

Meanwhile, Moldova has begun aligning its laws with the EU’s MiCA framework. Finance Minister Andrian Gavrilita confirmed plans to legalize trading and holding of crypto, though it won’t be recognized as a payment method. The regulations will be created jointly with the central bank and anti-money laundering bodies.

Wyoming Introduces Frontier Stable Token

The state of Wyoming has launched the Frontier Stable Token (FRNT), now live on the Solana blockchain. The token can be purchased through Kraken and used across several blockchains, including Ethereum, Avalanche, and Polygon.

Lawmakers in Wyoming said the token is backed by US Treasurys and dollar reserves. It is being promoted as a lower-fee, more stable alternative to credit-based payments. Other US states like North Dakota have also explored similar stablecoin projects.

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