Table of Contents
Why the DOJ investigation into Jerome Powell is unprecedented
The US Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome Powell. The formal reason cited is his testimony before the Senate regarding the renovation of Federal Reserve buildings.
Powell, however, has stated that the probe is politically motivated and linked to his refusal to submit to pressure over interest rate policy.
Trump, interest rates and political pressure on the Fed
Donald Trump has denied involvement in the investigation but has once again criticized Powell, arguing that US interest rates remain too high.
The dispute revives a long-standing conflict between political leadership and central bank independence. Powell claims that threats of criminal prosecution are tied directly to the Federal Reserve’s unwillingness to cut rates under political demand.
Global central banks defend Fed independence
In response to the investigation, the heads of eleven of the world’s largest central banks, including the European Central Bank and the Bank of England, issued a joint statement in support of Jerome Powell.
The key message was clear: the independence of central banks is a cornerstone of price stability, financial stability and economic resilience.
This level of coordinated international response is rare and signals that the issue is being taken far beyond US domestic politics.
What this means for US financial credibility
The credibility of US monetary policy depends on the perception that the Federal Reserve operates independently.
Any erosion of this principle would increase systemic risk, destabilize global capital flows and weaken confidence in US debt markets.
Why this matters for Bitcoin and crypto markets
Crypto was born out of distrust in centralized monetary authorities.
Political interference in interest rate policy is exactly the type of scenario that historically drives capital toward alternative monetary systems such as Bitcoin and stablecoins.
If investors begin to price in reduced central bank independence, demand for non-sovereign assets is likely to increase.
How this connects to the CLARITY Act and crypto regulation
At the same time, US lawmakers are debating the CLARITY Act — a bill intended to define the structure of crypto regulation and split oversight between the SEC and CFTC.
The Powell investigation adds urgency to this process. Clear crypto regulation combined with macro-level uncertainty around central banking creates a powerful incentive for institutions to diversify into digital assets.
Stablecoins as the bridge between monetary systems
As trust in traditional institutions is questioned, stablecoins are emerging as the connective tissue between fiat systems and blockchain finance.
Banks, fintech firms and regulators are now forced to consider how digital dollars fit into a world where monetary authority itself is under scrutiny.
The bigger picture for 2026
This is not an isolated story.
It is the convergence of macro politics, monetary policy, regulatory reform and crypto infrastructure into a single narrative: the architecture of the global financial system is being rewritten in real time.
And crypto is no longer watching from the sidelines.
