Economist Robin Brooks expects Kevin Warsh, nominated by President Donald Trump for Federal Reserve chair, to implement a 100-basis-point interest rate cut before the US midterm elections, CoinDesk reported on Feb. 3. The forecast contrasts with broader market concerns that Warsh would adopt a more hawkish policy stance if confirmed to lead the central bank.

Trump and his allies raised $429 million over the past year for the midterm elections, setting a midterm-year record, the Financial Times reported on Feb. 3. Maga Inc, a super PAC controlled by Trump allies, now holds $304 million, more than any PAC in a midterm year, with a large share from the cryptocurrency and AI industries. Crypto.com donated $30 million to Maga Inc, the largest disclosed contribution, while a16z co-founders Marc Andreessen and Ben Horowitz each gave $3 million, and OpenAI co-founder Greg Brockman and his wife contributed $25 million. The SEC's investigation into Crypto.com during the Biden administration concluded in 2025, the Financial Times said.

President Trump said on Feb. 3 that the criminal investigation into Federal Reserve Chair Jerome Powell should proceed and would not be halted due to objections from within the Republican Party, BlockBeats reports. Republican Senator Thom Tillis had warned he would oppose any new Fed chair nominee, potentially stalling Kevin Warsh's nomination, if the probe is not concluded. Trump stated at the White House that federal prosecutor Jeanine Pirro, who is overseeing the case, should "find out the facts and reach a conclusion"; Powell has confirmed he is under criminal investigation and argued the accusations stem from the Fed not cutting rates as quickly as Trump wanted, stressing that interest-rate decisions are made in the public interest, with the probe centering on a costly renovation project at the Fed's headquarters and Powell's term ending in May.

The White House will hold a meeting with cryptocurrency companies and banks at 1:00 p.m. U.S. Eastern Time on Feb. 2 (2:00 a.m. Beijing Time on Feb. 3) to discuss disagreements over stablecoin yields within the CLARITY Act framework, BlockBeats reports.

Hong Kong's Monetary Authority has received 36 applications to operate as fiat stablecoin issuers and aims to grant the first batch of licences in March, chief executive Eddie Yue said on Feb. 2. The HKMA is reviewing submissions and has asked some applicants for more details on use cases, risk management and reserve asset composition. Yue said the initial batch will "definitely not be large" as the authority prioritises prudence and stability while refining its virtual asset regulatory framework.

Coinbase CEO Brian Armstrong has become a leading adversary of Wall Street's traditional financial giants amid sharp tensions over crypto regulation, The Wall Street Journal reported on Feb. 2. Armstrong and bank executives including JPMorgan Chase's CEO diverge on the Cryptocurrency Market Structure Bill (CLARITY Act), as banks fear higher stablecoin yields could divert $6.6 trillion in deposits and hurt lending. Armstrong argues for free-market competition and accuses banks of blocking rivals, while Stripe CEO Patrick Collison commented that Armstrong's stance appears misaligned with Coinbase's narrow interests in a world that bans yield-sharing on USDC. Collison said he believes Armstrong's position is driven by a belief in dynamic, competitive markets that safeguard consumer freedom, and Armstrong reposted the remarks, stating he seeks the best social outcome and views the issue as a positive-sum game where crypto firms and traditional finance can both win.

Hang Seng Gold ETF began trading on the Hong Kong Stock Exchange on Jan. 31 as the first physical gold ETF in Hong Kong allowing retail investors to redeem directly through banks, Caixin reports. Financial Services and the Treasury Bureau Secretary Christopher Hui said at the 19th Asian Financial Forum the ETF is also planning distribution through licensed digital asset trading platforms. Hang Seng Investment Management Director and CEO Rosita Lee said the ETF's tokenized, non-listed class is in final testing and is expected to launch in the first quarter of 2026 with access open to retail investors at a lower minimum investment, offering only USD-denominated units without physical gold redemption.