The US Supreme Court decided that President Donald Trump did not have the power to impose tariffs as he did. While markets have taken the decision in stride, the impact on cryptocurrencies is likely to be modest, at least for now, as there are political considerations that may influence the industry’s political trajectory in Washington.
Although Trump’s aggressive and sometimes turbulent pursuit of tariffs under the International Emergency Economic Powers Act is halted, the president has other options to replace them with tariffs available under other legal authorities governing American trade. He said at a news conference Friday after the “deeply disappointing” decision that “there are methods, practices, statutes and authorities, as the entire court recognized in this terrible decision… that are even stronger than the IEEPA tariffs available to me as president of the United States.”
“Other alternatives will now be used to replace those that the court incorrectly rejected,” Trump said.
In the short term, whatever occupies policymakers in the coming weeks could threaten to steal some of the oxygen from the US Senate’s already uncertain timeline for achieving the cryptocurrency industry’s main goal: passage of the Digital Asset Market Clarity Act that would govern the structure of the US cryptocurrency market.
Sen. Bernie Moreno, R-Ohio, a staunch Trump supporter and big proponent of cryptocurrencies, posted on the social media site
On the other side of the aisle, Sen. Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, welcomed the Supreme Court’s 6-3 ruling but suggested it left intact the harm already imposed on consumers. Earlier this month, the Tax Foundation reported an estimated impact per household of $1,000 last year and $1,300 this year due to the tariffs.
“The court has struck down these destructive tariffs, but there is no legal mechanism for consumers and many small businesses to get back the money they have already paid,” U.S. Sen. Elizabeth Warren said in a statement. “Instead, giant corporations with their armies of lawyers and lobbyists can sue for tariff refunds and then keep the money. It’s yet another example of how the game is rigged.”
The Cato Institute, however, remains hopeful that the “tens of billions” in customs duties collected through tariffs will be returned.
“That refund process could be easy, but it appears more likely that more litigation and paperwork will be required, a particularly unfair burden on smaller importers who lack the resources to litigate tariff refund claims but have never done anything wrong,” according to a Friday statement from economists at the libertarian think tank.
The impact of the crypto bill
Despite the legal resolution, the tariff dispute and its consequences will likely take center stage in this year’s midterm legislative elections, and those races could have a profound effect on the cryptocurrency sector.
If Congress has not yet passed a market structure bill by this summer, the industry’s political efforts will depend on the outcome of those elections, especially if they change the majority in the House of Representatives or both chambers of Congress. And even if the crypto industry already has the Clarity Act in its hands by then, there are a number of other legislative initiatives in play regarding taxes and bitcoin. reservations.
The Supreme Court’s rebuke of Trump’s illegal tariff regime could provide some boost to Democratic candidates in otherwise close races.
Democratic candidates will seek to convince voters that the tariffs have harmed them personally, as Warren argued. If enough Democrats win to secure a majority in the House, they could make it much more difficult for current crypto policy to move forward without major overhauls that could impose further limitations on the sector.
Read more: Bitcoin explodes then crashes as Supreme Court strikes down Trump tariffs
