The controversy over the Federal Reserve's independence has reached the Supreme Court again.

On January 21, Federal Reserve Chair Jerome Powell will personally appear in court to participate in a crucial hearing. The core issue is: Trump wanted to dismiss Federal Reserve Board member Lisa Cook, but this is an almost unprecedented move in American history.

**Why is this such a big deal?**

The independence of the Federal Reserve is the cornerstone of the modern financial system. In theory, the President cannot dismiss Federal Reserve Board members arbitrarily — there must be "just cause." But Trump attempted to bypass this procedure, which is equivalent to directly challenging a nearly century-old institutional arrangement. Powell's personal appearance itself sends a signal: we will defend this line of defense.

What will the Supreme Court decide? This decision addresses a fundamental question: can executive power directly intervene in monetary policy?

**What does this mean for the crypto market?**

If the Federal Reserve's independence is maintained, monetary policy making will remain relatively stable and predictable. Safe-haven funds may stay in traditional assets (U.S. Treasuries, U.S. stocks), and Bitcoin and Ethereum will gain more fundamental support — after all, markets need policy predictability.

Conversely, if independence is weakened, administrative intervention in monetary policy could become the new normal. In that case, inflation expectations might rise, the US dollar's creditworthiness could come under pressure, and investor confidence in fiat currencies may decline. Crypto assets as alternative assets will become much more attractive — this is one of the ways the crypto market has historically gained liquidity.

**Key Timeline**

On January 21 at 23:00 Beijing time (Wednesday), the Supreme Court will hold oral arguments. This is not the final ruling, but the market will react immediately. Once the decision is announced, global asset prices may adjust accordingly. You need to be mindful of your holdings.

The outcome of this hearing could be more far-reaching than an FOMC meeting.