The U.S. Supreme Court is currently reviewing the legality of Donald Trump's tariffs, raising important economic questions. On November 5, 2025, justices expressed skepticism about using the 1977 International Emergency Economic Powers Act to justify these tariffs.
Discussions centered on whether the president's power includes tariff imposition, with justices Barrett and Gorsuch raising constitutional concerns. Amy Coney Barrett, Associate Justice, Supreme Court of the United States, remarked, "Has there ever been another instance in which a statute has used that language to confer the power?" The case's outcome is eagerly watched by both political and financial sectors, especially the crypto market.
Crypto Volatility Spurs Exchange Caution with Margin Increases
The crypto market is witnessing increased volatility, with leaders like CZ and Vitalik Buterin voicing their concerns. On November 5, BTC's 24-hour liquidation volume hit $1.2 billion, marking its highest since October 10, indicating market unrest among crypto traders.
Cryptocurrency exchanges such as Coinbase have increased margin requirements for leveraged products. While no immediate regulatory changes have been enacted, SEC and CFTC officials acknowledge the broader market effects and advise industry vigilance.
Past Economic Events Echo in Crypto Market Reactions
Similar macroeconomic events have previously led to crypto sell-offs, such as the 2024 U.S.-China trade tensions, which resulted in a 15% drop in major cryptocurrencies. These moments reveal the market's sensitivity to global policy shifts.
Experts suggest that the crypto market's resilience may cushion some impact, but short-term volatility is expected. Historical data points to the crypto sector as a barometer for wider financial system fluctuations, urging cautious optimism among stakeholders.