The appeal was made just as markets brace for an imminent Fed rate cut, and it amplified the uncertainty around both monetary policy and the central bank’s independence. Meanwhile, Coinbase is escalating its confrontation with the Securities and Exchange Commission, and filed a motion that challenges the agency’s handling of nearly a year’s worth of deleted text messages from former SEC Chair Gary Gensler.
Trump Pushes Appeal Against Lisa Cook
President Donald Trump escalated his legal confrontation with Federal Reserve Governor Lisa Cook by filing an appeal just days before a pivotal interest rate decision by the central bank. The appeal challenges a preliminary injunction that was issued on Sept. 9 that temporarily blocked Trump’s attempt to remove Cook from office.
Representing the administration, Department of Justice lawyers argued that the president has broad discretion to remove officials “for cause,” and that such decisions are not subject to judicial review when no specific statutory definition of “cause” exists.
Trump initially wanted to remove Cook on Aug. 25, due to what he described as “deceitful and potentially criminal conduct” related to mortgage agreements. According to the administration, Cook misrepresented her property status in loan documents, a claim she strongly disputed.
Cook argued that her dismissal exceeded presidential authority and violated her due process rights. Naturally, the legal battle attracted a lot of attention because it not only tests the limits of presidential power but also raises fresh questions about the independence of the Federal Reserve, which is a cornerstone of confidence in US monetary policy and the dollar’s stability.
Over the weekend, NBC reported the emergence of documents that may undermine the administration’s allegations. A loan summary dated May 2021 indicates that Cook’s Atlanta property was correctly listed as a vacation home, not a primary residence, which supports her account of proper disclosure. This evidence casts doubt on the claim of misrepresentation and could weaken the government’s case at a crucial juncture.
The timing of the appeal adds even more intrigue, as it coincides with mounting anticipation around the Fed’s next policy move. Markets overwhelmingly expect a rate cut on Wednesday, with CME futures showing a 96.4% probability of a 25 basis point reduction to a range of 4.0% to 4.25%. There is still a smaller chance for a larger half-point cut.
Analysts warn against assuming a series of reductions will follow, with RSM chief economist Joe Brusuelas explaining that current data does not support the likelihood of multiple cuts by year’s end. Meanwhile, speculation is already turning toward the Fed’s leadership beyond Jerome Powell’s tenure, with BlackRock executive Rick Rieder emerging as a frontrunner for the chairmanship when Powell’s term expires in May.
The convergence of Trump’s appeal, fresh evidence in Cook’s defense, and the Fed’s imminent rate decision heightened uncertainty at a moment when monetary policy and institutional independence are under intense scrutiny.
Coinbase Escalates Legal Fight With SEC
Lisa Cook is not the only politician currently living under the microscope. Coinbase recently intensified its battle with US regulators by filing a legal motion that raises new questions about transparency at the Securities and Exchange Commission (SEC). The exchange is asking a court to intervene after an investigation by the SEC’s Office of the Inspector General revealed that nearly a year of text messages from former SEC Chair Gary Gensler and other top officials were deleted in what the report called “avoidable” errors.
Coinbase argued that the agency failed to conduct a full search of its records, including text communications, when the exchange submitted multiple Freedom of Information Act requests in 2023 and 2024. The company now wants the court to compel the SEC to hand over all relevant communications, including those related to Ethereum’s transition to a proof-of-stake system, which it believes are crucial to its ongoing legal defense. Coinbase also suggested that further hearings could be needed once the records are reviewed, which could potentially open the door to additional remedies like attorney fees or even a Special Counsel investigation.
A spokesperson from the SEC said current leadership acted quickly to review the circumstances and implement safeguards to prevent similar issues in the future. Still, the loss of messages covering the period from October 2022 to September 2023 became a flashpoint, particularly since it overlaps with major enforcement actions against crypto firms.
The agency sued Coinbase in 2023 after accusing it of operating as an unlicensed securities broker. In turn, Coinbase wanted access not only to official records but also to Gensler’s personal emails, arguing they may contain insights relevant to the case.
For Coinbase, the fight evolved beyond compliance into a challenge over accountability, record-keeping, and the role of regulators in shaping the future of digital assets in the United States.
