Trump's Fed Overhaul Rattles Crypto Markets as Rate Cut Looms

• Pro-crypto Fed member confirmed as Lisa Cook fights removal.

On September 16, 2025, Cointelegraph reported the Trump administration’s efforts to reshape the Federal Reserve, sparking crypto market uncertainty over its independence and regulation policy. Key developments include charges brought against Federal Reserve Governor Lisa Cook and the Senate's confirmation of White House economic adviser Stephen Miran to the Fed board.

The administration has levied mortgage fraud charges against Governor Lisa Cook, a Biden-era appointee, in an effort to remove her from her role. Cook has denied the allegations, labeling them as politically motivated and an “unprecedented and illegal” assertion of executive power. In response, an appeals court in Washington temporarily blocked the White House’s move to oust Cook, ensuring she remains in her position while the legal case is unresolved.

Meanwhile, the Senate has confirmed Stephen Miran, a White House economic adviser, to the Federal Reserve’s board of governors. Miran, who has expressed pro-crypto views in the past, will serve a temporary term ending in January 2026. His decision to simultaneously retain his position as a White House adviser has raised concerns among Democratic lawmakers, who worry this dual role could compromise the Fed’s independence from political influence.

The broader crypto market is closely watching these developments due to the Federal Reserve’s influence on both monetary policy and banking oversight. Banks, which provide key financial services to crypto companies, act as quasi-regulators for the industry. Aaron Brogan, founder of the crypto-focused law firm Brogan Law, explained that while a more politicized Fed may not diminish its regulatory reach, its policies could become “more changeable and susceptible to public whims.”

The rate cut expected from the Federal Reserve further deepens the stakes for crypto markets. According to Cointelegraph, reduced interest rates traditionally serve as a bullish signal for cryptocurrencies by making alternative, riskier investments more attractive in comparison to assets like bonds. This dual development of evolving Fed leadership and monetary policy adjustments introduces uncertainty over how the central bank might shape crypto regulation in the near future.

As of September 16, 2025, 15:00 UTC, Ethereum (ETH) is trading at $1,617, with a 3.2% increase in 24-hour trading volume, according to CoinMarketCap. Bitcoin (BTC) is trading at $27,452, with a 1.5% change within the same period.