The Daily: Crypto market braces for Trump’s ‘Liberation Day’ impact, FDUSD stablecoin depegs after Justin Sun raises solvency concerns and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.Happy Liberation Day! Could lower-than-expected tariff announcements from President Trump later on Wednesday give markets a much-needed boost, or are crypto holders about to be liberated from their money once again? In today's newsletter, traders brace for Liberation Day's impact, FDUSD depegs after Justin Sun raises solvency concerns, Elon Musk's X urges the U.S. Supreme Court to block IRS access to Coinbase's user data and more.Meanwhile, Circle's IPO filing shows it paid $210 million to acquire Coinbase's stake in its USDC venture. Plus, CoinList returns to the U.S. — and is hosting a token sale for DoubleZero.Let's get started.Crypto traders brace for Trump's 'Liberation Day' tariffs"Liberation Day" is now upon us, with President Trump expected to announce large-scale tariffs — including reciprocal tariffs — later on Wednesday.Bitcoin traded down over the past week as an unfavorable PCE reading and the latest tariff announcement ping-pong saw crypto and equity markets sell off.Tariffs remain the primary market-moving factor, while U.S. jobs data may bring more volatility later this week, according to analysts at K33."We expect tariff announcements to have a big impact on the market with correlations between equities and bitcoin remaining high," the analysts said, with their base case being that this will enforce choppy conditions throughout April and see bitcoin extend its consolidation in the $75,000 to $88,000 range."We don't expect a sense of certainty and clarity post-April 2, as we expect responses, negotiations, sudden turnarounds and surprises throughout April."However, amid the significant tariff-induced derisking, the analysts also see light at the end of the tunnel, with U.S. Strategic Bitcoin Reserve developments flying under the radar.Federal agencies are scheduled to submit reports by April 5 outlining their authority to transfer digital assets to the reserve, with the potential to see large onchain transactions and the early soft launch of the SBR, according to K33.Details on budget-neutral acquisition strategies aren't expected until closer to 60 days after Trump's executive order, around May 5, when Treasury Secretary Scott Bessent will deliver an evaluation of the legal and investment considerations for the reserve."Another crypto summit could also happen in early to mid-May, re-drumming up excitement as tariff headlines gradually taper," the analysts said.FDUSD stablecoin depegs after Justin Sun raises solvency concernsTron founder Justin Sun has warned users to withdraw funds from stablecoin issuer First Digital Trust, claiming the firm is insolvent and unable to fulfill redemptions.First Digital's FDUSD stablecoin depegged by around 9% immediately afterward, briefly wiping out millions of dollars in market cap before largely recovering.Sun's comments followed a CoinDesk report that Techteryx, the issuer of the TrueUSD stablecoin, filed a lawsuit against First Digital CEO Vincent Chok, alleging mismanagement, including the diversion of nearly half a billion dollars worth of TUSD into illiquid investments when it was used as a fiduciary.Tron founder Justin Sun stepped in at the time to backstop the stablecoin and prevent a potential liquidity crisis, CoinDesk reported, while Chok denied any wrongdoing, claiming the issue stemmed from anti-money laundering concerns tied to Techteryx's ownership structure.First Digital later said on X that the allegations are false, it is "completely solvent" and it would "pursue legal action to protect its rights and reputation."Sun is strongly associated with rival stablecoin USDD, issued by the Tron DAO Reserve.Elon Musk's X urges Supreme Court to block IRS access to Coinbase user dataElon Musk's X has urged the U.S. Supreme Court to block the Internal Revenue Service from accessing Coinbase user data without a warrant.The social media platform, along with seven other researchers and advocacy groups, argues that the IRS violated privacy rights with the use of so-called "suspicionless" subpoenas to obtain three years of transaction records from over 14,000 Coinbase users.The Supreme Court subsequently requested a response from the federal government following X's petition.Meanwhile, Politico reported on Wednesday that President Trump told his inner circle that Musk will step back from his Department of Government Efficiency role in the coming weeks.Ripple stablecoin launches on Kraken as market cap nears $250 millionRipple's RLUSD stablecoin has launched on crypto exchange Kraken, expanding its availability with a market cap nearing $250 million since debuting in December.Ripple has also begun integrating the stablecoin into its own payments platform, enabling its use for cross-border transactions with select customers, including BKK Forex and iSend, to enhance their treasury operations.Ripple aims for broader adoption of RLUSD, with plans to eventually allow other customers to use the stablecoin.While Tether's USDT remains the clear leader in the $277 billion stablecoin market, growing adoption and increasing regulatory clarity are drawing interest from major institutions like Bank of America, which are exploring the launch of their own tokens.Crypto's 'largest bug bounty prize in history'Decentralized stablecoin protocol Usual has teamed up with blockchain security company Sherlock to offer a $16 million bug bounty program.The program is described as crypto's "largest bug bounty prize in history," which seems to ring true, with prior bounties from Uniswap ($15.5 million), LayerZero Labs ($15 million) and Wormhole ($10 million) previously making up the top three.Only vulnerabilities deemed critical will be eligible for the $16 million top payout and all reports must be submitted directly to the Usual bug bounty page on Sherlock.In the next 24 hoursEurozone PPI data are released at 5 a.m. ET on Thursday. U.S. jobless claims figures follow at 8:30 a.m.U.S. Federal Reserve Governor Philip Jefferson will speak at 12:30 p.m. Fed Governor Lisa Cook follows at 2:30 p.m.Wormhole is set to unlock 1.39 billion W tokens worth $106 million — 47.29% of its circulating supply.Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.Disclaimer: This article was produced with the assistance of OpenAI’s ChatGPT 3.5/4 and reviewed and edited by our editorial team.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.