🔮 Tariffs, Tensions, Turmoil Trump’s Trade Tactics Threaten Tumultuous Times

Tariffs, Tensions, Turmoil Trump’s Trade Tactics Threaten Tumultuous Times

President Trump’s newly announced blanket 10% tariff, alongside targeted penalties for 60 countries based on a trade-deficit formula, could push the effective U.S. tariff rate to 22.5%–30%—the highest in over a century, according to Yale’s Budget Lab. Historically, this marks the most aggressive U.S. trade action since the Smoot-Hawley Tariff Act of 1930, which worsened the Great Depression.

Supporters argue the plan corrects decades of trade imbalances, encourages domestic manufacturing, and bolsters economic sovereignty. Critics, however, call the methodology simplistic and warn of broad economic fallout. Forecasts show U.S. GDP could contract by 0.9%–1.0% in 2025, with long-term output falling by up to $180B annually. Households may face $3,400–$4,200 in added costs, with food prices rising 3.7%. While China appears resilient due to reduced export reliance, other trading partners may retaliate.

Markets are jittery, and supply chain disruptions remain a concern. Still, advocates see tariffs as a strategic lever to strengthen U.S. industry and negotiate fairer trade terms.

Top Stories

Swapping Pumps

Pump.fun launched its native DEX, PumpSwap, on March 20, marking a major shift in Solana’s memecoin trading landscape. The new platform enables direct trading of tokens that previously migrated to Raydium, eliminating the 6 SOL migration fee and laying groundwork for future creator revenue sharing. PumpSwap processed $270 million in volume in its first days—just 2% of Raydium’s $13B March volume—but it benefits from seamless integration with Pump.fun’s launchpad, offering a strong funnel for user growth. The move disrupts Solana’s previously stable DEX hierarchy, with top players Raydium, Orca, and Meteora handling $37B collectively last month. By vertically integrating creation and trading, Pump.fun aims to reclaim fees lost to other exchanges—a trend seen in maturing DeFi markets. Whether this strategy cements Pump.fun’s position or triggers a defensive response from incumbents remains to be seen.

Source: The Block

Tether Boosts Bitcoin Holdings to $7.8B, Now 6th-Largest Holder

Stablecoin giant Tether added 8,888 BTC in Q1 2025 for $735 million, increasing its total bitcoin reserves to 92,646 BTC—valued at over $7.8 billion—making it the sixth-largest single-wallet holder of the asset. The purchase, logged on March 31, aligns with Tether’s strategy of allocating 15% of quarterly profits to bitcoin since September 2022. With BTC prices soaring, Tether now holds an estimated $3.9 billion in unrealized gains. The company posted $13 billion in net profit in 2024 and continues to diversify beyond stablecoins into bitcoin mining, energy, and AI. Separately, Japan’s Metaplanet acquired an additional 696 BTC, bringing its total to 4,046 BTC worth over $340 million.

BlackRock’s Fink Warns U.S. Dollar at Risk as Bitcoin Gains Ground

In his annual letter to investors, BlackRock CEO Larry Fink cautioned that the U.S. dollar could lose its status as the world’s reserve currency to bitcoin if federal deficits continue to rise unchecked. Praising decentralized finance as a “faster, cheaper and more transparent” innovation, Fink warned that global confidence in the dollar could erode if digital assets are seen as safer stores of value. He highlighted the explosive growth of BlackRock’s spot Bitcoin ETF, IBIT, which surpassed $50 billion in AUM within a year—making it the largest ETF launch in history. Fink also touted tokenization as a transformative force for traditional finance, suggesting blockchain-based ownership of real-world assets could democratize access and reshape investing.

Source: Blackrock

FDUSD Depegs After Justin Sun Alleges Issuer Insolvency

First Digital’s FDUSD stablecoin briefly lost its dollar peg by 9% after Tron founder Justin Sun claimed the issuer was insolvent and urged users to withdraw funds. The depeg caused a short-lived plunge in market cap before partial recovery. Sun’s warning followed reports that Techteryx, issuer of TrueUSD, filed a lawsuit accusing First Digital CEO Vincent Chok of diverting nearly $500 million in client assets into illiquid investments. While Sun previously intervened to support TUSD during that crisis, he is also linked to rival stablecoin USDD. First Digital denied all allegations, asserting its solvency and announcing plans for legal action to defend its reputation.

PayPal and Venmo to Add Solana and Chainlink Support in Expanded Crypto Push

PayPal and Venmo users will soon be able to buy, sell, hold, and transfer Solana (SOL) and Chainlink (LINK), further expanding the platforms’ crypto offerings beyond Bitcoin and Ethereum. The rollout will occur over the coming weeks, with PayPal citing increased user demand and its commitment to crypto accessibility. This follows earlier expansions, including the launch of PayPal’s own stablecoin PYUSD and integration with Ethereum Name Service (ENS). The move positions PayPal and Venmo as key bridges between traditional payments and Web3, aligning with PayPal’s goal to see 20 million merchants adopt PYUSD by the end of 2025.

Regulation

House Panel Pushes Forward on Stablecoin Rules, Eyes CBDC Ban

The House Financial Services Committee voted 32-17 to advance the STABLE Act, a key bill aimed at regulating dollar-backed stablecoins and modernizing oversight of digital financial infrastructure. Chair French Hill (R-AR) argued that regulation is essential to maintain U.S. competitiveness as blockchain transforms global money flows. Debate included amendments probing President Trump’s crypto ties, highlighting growing political scrutiny. The House bill now heads toward negotiations with the Senate’s GENIUS Act, which takes a different stance on foreign issuers and market structure. The committee also advanced a separate bill from Rep. Tom Emmer to block the issuance of a U.S. CBDC, underscoring ongoing resistance to centralized digital currency efforts.

Senate Overturns Controversial IRS DeFi Tax Rule, Trump Expected to Sign

The U.S. Senate voted 70-28 to repeal a contentious IRS crypto tax rule, advancing the measure to President Trump, who is expected to sign it into law. The rule, finalized just before Trump took office, would have required certain decentralized finance (DeFi) service providers—specifically those operating front-end interfaces—to act like traditional brokers by collecting user data and issuing Form 1099s for non-employment income. Critics argued it overreached by targeting web-facing entities rather than protocols themselves. Trump’s senior advisors, including White House Crypto Czar David Sacks, have recommended approval, citing the administration’s pro-innovation stance.

Tether Weighs U.S.-Compliant Stablecoin Amid Regulatory Pressure on USDT

Tether CEO Paolo Ardoino said the firm is prepared to launch a new U.S.-compliant stablecoin if upcoming legislation pushes USDT out of American markets. Despite concerns over the STABLE and GENIUS Acts—which would require rigorous anti-money laundering compliance and financial audits—Ardoino downplayed the risk, stating USDT remains essential in emerging markets and that Tether is “not fussed” by U.S. rules. He signaled Tether’s openness to audits and affirmed continued cooperation with law enforcement, while confirming that the company has invested in new stablecoin ventures in the U.S. and Europe. Ardoino also acknowledged a future where USDT may no longer be offered in either the U.S. or EU, yet emphasized that access to USDT remains crucial for global remittances. The new legislation would limit USDT’s availability to American users but may still permit trading on decentralized platforms.

Other Domestic Regulation Updates

• PayPal activates SOL and LINK support in US
• SEC Officially Drops Cases Against Kraken, ConsenSys, and Cumberland DRW
• Circle IPO odds tumble on Polymarket
• Prospective SEC chair pressed on sale of FTX-tied firm
• Bo Hines discusses quarterbacking the White House’s crypto strategy
• Trump’s SEC pick grilled on past agency actions, conflicts of interest 
• Elon Musk and DOGE: What You Need to Know About the Department of Government Efficiency
• Fidelity Lets Investors Directly Invest in Crypto Through New IRA Plan

Other International Regulation Updates

• UK Police Team With Law Firm for Asset Recovery Program Following Crypto Fraud Seizure
• Ripple Integrates RLUSD Stablecoin Into Cross-Border Payments System
• Tron's Justin Sun Bailed Out TUSD as Stablecoin's $456M Reserves Were Stuck in Limbo, Filings Show

Pain & Gain

Pain

• DOGE price drops as Elon Musk confirms 'no plans' to use the memecoin
• Multiple altcoins suddenly crash on Binance

Gain

• Circle taps JPMorgan Chase, Citi ahead of planned IPO filing
• Ripple stablecoin launches on Kraken as market cap nears $250 million
• Ethena Labs’ USDtb Stablecoin Surges 1,500%, Enters Top 10 Stablecoins
• Matcha says most DEXs will support Solana by year-end