Trump Escalates Fed Criticism While Italy Cracks Down on Fin-Fluencers

Trump Turns Up the Heat on the Federal Reserve

Political pressure on the US Federal Reserve reached a new peak after President Donald Trump escalated his criticism of Fed Chair Jerome Powell, triggering a criminal investigation by the Department of Justice. The probe focuses on allegations that Powell mishandled public funds during renovation projects at Federal Reserve office buildings — accusations that Powell has firmly rejected.

According to sources close to the matter, the DOJ launched the investigation following direct instructions from Trump, who has long expressed dissatisfaction with the Fed’s monetary policy direction. Powell responded by describing the investigation as politically driven, arguing that it stems from the Fed’s refusal to tailor interest rate decisions to presidential preferences rather than economic data.

The dispute highlights a broader struggle over the independence of the Federal Reserve. Trump has repeatedly criticized Powell for keeping interest rates higher than he believes necessary, claiming that tighter monetary policy has constrained economic growth. Powell, meanwhile, has maintained that the Fed’s mandate is to act in the public interest, not under political influence.

Trump previously toured the renovated buildings and publicly questioned their costs, alleging budget overruns under Powell’s leadership. While no formal conclusions have yet been reached, the investigation has reignited debates over how far political power should extend into central banking decisions.

Coinbase Freezes Fiat Services in Argentina

In a surprising move, Coinbase has suspended peso-based fiat services in Argentina, just one year after entering the country’s market. The US-based crypto exchange confirmed that Argentine users will soon be unable to buy or sell USDC using pesos or withdraw funds directly to local bank accounts.

The company described the decision as a  deliberate pause,  explaining that it needs time to reassess whether its services are sustainable under Argentina’s complex financial environment. The suspension is expected to take full effect by the end of January.

Industry analysts say the move reflects broader structural challenges rather than a loss of confidence in crypto adoption. Argentina’s volatile economy, strict capital controls, and regulatory friction often make local currency integration difficult for global platforms. According to regional observers, similar pauses have occurred before when compliance costs outweigh short-term growth potential.

Despite the setback, many see Argentina as a long-term crypto market due to its history of inflation and strong grassroots adoption of digital assets.

NFT Paris Cancelled as Market Struggles Continue

The ongoing downturn in the NFT market has claimed another high-profile casualty. Organizers of NFT Paris announced the cancellation of the upcoming conference, citing harsh market conditions that made the event financially unviable.

Originally scheduled for February, the event was intended to focus on non-fungible tokens and real-world asset tokenization. However, organizers admitted that the prolonged market collapse severely impacted sponsorships and attendance expectations. Even after aggressive cost-cutting and months of restructuring efforts, they were unable to move forward.

The cancellation underscores the challenges facing the NFT sector. After reaching record highs in 2022, the market has struggled to regain momentum. Current data shows total NFT market capitalization hovering just above $3 billion, with daily trading volumes remaining extremely low.

Ticket holders will receive full refunds, though organizers have not confirmed whether NFT Paris will return in the future.

Wyoming Enters the Stablecoin Arena

Wyoming has officially launched its own state-backed stablecoin, marking a historic step in the evolution of digital assets in the United States. The Frontier Stable Token (FRNT) is now available to the public and operates initially on the Solana blockchain.

State officials framed the launch as part of Wyoming’s broader push to position itself as a leader in crypto-friendly regulation. The token is already listed on Kraken and can be bridged to multiple major blockchains, including Ethereum, Arbitrum, Polygon, Avalanche, Base, and Optimism.

Supporters argue that state-issued stablecoins offer practical advantages over traditional payment systems. Backed by dollar reserves and US Treasury assets, these tokens aim to provide price stability while reducing transaction costs compared to credit cards and banking rails.

Wyoming’s move may not remain isolated for long. Other US states have expressed interest in similar initiatives, signaling a growing trend toward localized digital currency experiments.

Italy Draws a Line for Financial Influencers

Italian regulators have issued a strong warning to social media influencers who promote financial products, particularly cryptocurrencies. The country’s securities authority, CONSOB, reminded so-called  fin-fluencers that advertising financial services carries legal responsibilities far beyond lifestyle endorsements.

Referencing EU-wide regulations, CONSOB emphasized that promoting high-risk assets such as crypto can expose influencers to legal consequences if their content misleads investors. Authorities stressed that losses in these markets can be total, and promotional messaging must reflect that reality.

Importantly, regulators clarified that commonly used disclaimers like  this is not financial advice do not shield influencers from accountability. Under guidance from the European Securities and Markets Authority, influencers are expected to meet transparency and compliance standards similar to traditional financial promoters.

The warning signals a tightening regulatory environment across Europe, where social media has become a powerful force in shaping retail investment behavior.

Moldova Moves Toward EU Crypto Standards

Moldova is preparing to align its crypto regulations with the European Union’s Markets in Crypto-Assets (MiCA) framework, signaling a shift toward clearer legal recognition of digital assets. Finance Minister Andrian Gavrilita confirmed that the government is working closely with EU authorities to draft new legislation.

The proposed framework would allow citizens to legally hold and trade cryptocurrencies while stopping short of recognizing them as a form of payment. Moldova’s central bank has consistently warned about crypto-related risks, and officials continue to describe the sector as highly speculative.

The new laws are expected to involve multiple institutions, including the Finance Ministry, National Bank, securities regulators, and anti-money laundering authorities. Gavrilita emphasized that while the government remains cautious, it acknowledges citizens’ right to participate in crypto markets under a regulated environment.

With this move, Moldova joins a growing list of countries seeking to balance innovation with financial stability by adopting EU-aligned crypto rules.

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