Court Decision on IEEPA May Transform Tariff Policies and Cryptocurrency Rules

Crypto Markets Prepare for Volatility as White House Considers Tariff Alternatives During Supreme Court Deliberation

The impending Supreme Court ruling on whether the Trump administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was lawful has unsettled financial markets, with

that the justices will affirm the president’s emergency tariff authority. At the same time, the White House is developing backup strategies to uphold its protectionist trade policies if the court invalidates tariffs based on IEEPA, a decision that could alter global trade and create new regulatory uncertainties for both investors and businesses.

IEEPA, a law from the 1970s that empowers presidents to declare national emergencies, has served as the

, making up more than half of the current 14.4% average tariff on U.S. imports. Yet, lower courts have already deemed these tariffs illegal, and Supreme Court justices voiced doubts in November, with about Congress delegating tax powers to the executive. If the court overturns the tariffs, the administration could be liable for $88 billion in refunds and would need to rely on narrower legal authorities such as Sections 232, 301, or 122 of the Trade Act, and require congressional involvement.

Although these alternative measures are legally sound, they come with their own challenges. Sections 232 and 301, which address national security and unfair trade, require extensive investigations and could spark disputes with allied nations. , is only valid for 150 days unless Congress extends it. According to PIMCO analysts, the administration could still reestablish tariffs using these mechanisms, back to 10% or more, but this would create short-term unpredictability and complicate planning for businesses.

Meanwhile, the crypto industry is on alert for regulatory changes as the White House evaluates Treasury’s proposal to join the global Crypto-Asset Reporting Framework (CARF).

and major crypto centers like Singapore, would let the IRS access information on Americans’ overseas crypto accounts, aiming to reduce offshore tax evasion. While Trump’s advisors back the plan, crypto supporters warn it could hinder innovation by imposing strict requirements on decentralized projects. the White House to protect decentralized software developers from prosecution and to clarify tax guidelines for DeFi platforms.

The intersection of trade and crypto regulation highlights broader risks for the regulatory environment. A Supreme Court decision against IEEPA could delay tariff repayments, extending economic instability and possibly affecting the Federal Reserve’s schedule for lowering interest rates. At the same time, crypto markets are responding to the administration’s simultaneous focus on tariffs and digital asset rules, as investors assess the consequences of increased regulatory oversight. With the court’s verdict approaching, both businesses and investors must navigate a landscape where changes in trade or crypto policy could have global ripple effects.