Federal Reserve Chair Powell's recent conflict with the U.S. Department of Justice has escalated to a new level. The DOJ launched a criminal investigation against him over testimony related to a building renovation project, to which Powell responded publicly: this is not a genuine investigation, but outright political suppression.

The core trigger of the entire incident occurred last June. During a Senate testimony, Powell mentioned a construction project, and the DOJ subsequently issued a grand jury subpoena using this as an excuse. However, Powell firmly rejected this, claiming that the investigation had no relation to his testimony and was merely a pretext for political pressure.

Why is this matter so critical to the crypto circle? Powell's counterattack touches on a fundamental issue: Can the Federal Reserve still independently set interest rates, or must it yield to political pressure? This question goes far beyond any individual—it directly determines the decision-making space of the Fed.

From the perspective of the cryptocurrency market, Fed policies are considered a stabilizing force. The direction of interest rates influences liquidity across the entire financial system, which in turn affects the valuation logic of cryptocurrencies like Bitcoin and Ethereum. Once political forces begin to interfere with the Fed's independence, interest rate decisions could become uncertain, which would be akin to an earthquake for the crypto market that relies heavily on liquidity conditions.

In the short term, Powell's tough stance may help stabilize market psychology expectations. But long-term concerns have already emerged: when government power extends into the core of financial decision-making, the market's confidence foundation itself begins to weaken. No matter how the Fed acts in the future, the entire crypto market is likely to be affected by this political risk.