Crypto Highlights: Trump Advisor Meets with Fed Chair, Argentina's Milei Faces Impeachment, and PlanB Moves Bitcoin to ETFs

In today’s crypto news, several key developments are making waves in the market. From political figures in the U.S. and Argentina impacting the crypto landscape to prominent Bitcoin analyst PlanB adjusting his holdings, here’s a roundup of the most significant stories.

Trump Administration Advisor Meets Regularly with Federal Reserve Chairman Jerome Powell

Kevin Hassett, former director of the National Economic Council under President Donald Trump, has disclosed that he now meets regularly with Federal Reserve Chairman Jerome Powell to discuss interest rates. Hassett shared this update in a recent interview, highlighting his growing influence in discussions around U.S. economic policy.

President Trump had previously advocated for a reduction in interest rates to stimulate economic growth and reduce the federal government’s annual interest payments on its substantial $36 trillion national debt. However, Powell has made it clear that the central bank is in no rush to lower rates, as he expressed during a Senate Banking Committee hearing. This sentiment is not sitting well with investors who had hoped for a more dovish monetary policy heading into 2025.

Lower interest rates are typically a positive catalyst for the crypto market, as they encourage borrowing, which can boost demand for assets like Bitcoin and other cryptocurrencies. Investors in crypto closely watch the Federal Reserve’s actions, as changes in the rate environment have the potential to move market prices significantly.

Argentina's President Milei Faces Impeachment After Endorsing Failed Libra Token

Argentine President Javier Milei is under intense political pressure following his endorsement of the Libra (LIBRA) cryptocurrency project, which collapsed in spectacular fashion, wiping out millions in investor funds. The token, built on the Solana blockchain, launched on February 14, shortly after Milei shared details about the project on X (formerly Twitter).

Milei’s now-deleted post included a link to the project’s website and contract address, touting Libra as a "private project" designed to foster Argentina’s economic growth. The token quickly surged to a market capitalization of $4.56 billion, but within just 11 hours, its value plummeted by over 94%, leaving investors with significant losses. The token’s market cap dropped to just $257 million, triggering accusations of a potential rug pull.

In response, opposition lawmaker Leandro Santoro called for Milei’s impeachment, condemning the incident as a national embarrassment. The Argentine fintech chamber has also raised concerns that the token’s crash may have been part of a broader insider scam, further intensifying calls for accountability.

PlanB Moves Bitcoin Holdings to Spot Bitcoin ETFs

In an unexpected move, renowned Bitcoin analyst PlanB announced that he has transferred all of his Bitcoin holdings into spot Bitcoin exchange-traded funds (ETFs). PlanB explained his decision on February 15 in a post on X, stating that managing Bitcoin in ETFs allows him to treat it like traditional assets such as equities and bonds, without the complexities of self-custody.

“I guess I am not a maxi anymore,” PlanB remarked, signaling a shift in his approach to managing his Bitcoin. While Bitcoin maximalists advocate for the importance of self-custody — holding Bitcoin in personal wallets where users control their own private keys — PlanB cited the peace of mind that comes with avoiding the responsibility of securing those keys. With the risk of hacks, thefts, and other dangers associated with self-custody, PlanB’s move to ETFs could signal a growing acceptance of more traditional financial management methods in the world of cryptocurrency.

This shift also raises interesting questions about the future of Bitcoin as an asset, particularly regarding how institutional investors and analysts approach its management.

Conclusion

Today’s developments highlight the intersection of cryptocurrency and broader financial and political trends. Kevin Hassett’s discussions with Jerome Powell signal a deeper connection between crypto markets and traditional finance, while Milei’s involvement with the disastrous Libra token puts the spotlight on the risks of political figures endorsing crypto projects. Meanwhile, PlanB’s move away from self-custody represents a notable shift in how some Bitcoin holders are choosing to manage their assets in an increasingly regulated and institutionalized market.

As the crypto landscape continues to evolve, these events serve as key indicators of how both regulatory and financial forces are shaping the industry.