A reshuffling of financial power is underway in Washington. The Trump administration is going big this time—not just talking, but actually taking concrete steps to reshape the entire regulatory system.

Let’s start with the Federal Reserve. Traditionally, the Fed Chair has been a “tenured” position with strong independence. But things have changed: Trump has not only publicly criticized current Chair Powell, but also launched a new selection process for the next chair. Who’s the top candidate, Hassett? He’s the guy who’s been advocating for significant rate cuts. The plan is clear—by controlling the majority of seats on the Federal Reserve Board, they can influence the Federal Open Market Committee’s (FOMC) interest rate decisions. In plain terms, they want monetary policy to be more compliant and aligned with short-term political goals.

At the same time, it looks like spring is coming for the crypto industry. The new nominee for Chair of the Commodity Futures Trading Commission (CFTC) has made it clear: they want "innovation-friendly" regulation, and Congress is pushing bills to expand CFTC’s jurisdiction over spot markets. The new leadership at the Federal Deposit Insurance Corporation (FDIC) is even more direct, relaxing restrictions on banks entering crypto and scrapping those “reputational risk” reviews. Taken together, these moves show the entire regulatory framework is sprinting toward a looser, more centralized approach.

How’s the market reacting? Calling it nervous is putting it mildly. The dollar’s exchange rate has already started to fluctuate, and central banks around the world are reassessing their exposure to dollar assets. If the Fed’s independence really gets sidelined, the result could be global capital flows thrown into chaos, with central banks forced to rebalance their reserve assets. This is no joke—a silent institutional revolution is quietly rewriting the underlying logic of American financial power.

What happens next? We’ll have to wait and see.