Washington erupted in political crossfire Friday after the Supreme Court of the United States struck down President Donald Trump’s sweeping global tariffs.

The ruling triggered sharp partisan reactions and exposed a widening divide over trade, executive power, and the country’s economic future.

Partisan Firestorm Erupts as Lawmakers Clash Over Trade, Power, and $150 Billion in Tariffs

In a 6–3 decision, the Court ruled that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when he imposed broad “reciprocal” tariffs in 2025 without clear authorization from Congress.

The ruling invalidates most of those global duties, marking a major setback for a signature pillar of Trump’s second-term economic agenda.

Just like how stock and crypto markets reacted, the political reaction was immediate — and explosive.

Democrats Declare Victory

Senate Democratic Leader Chuck Schumer framed the ruling as a consumer win.

“This is a win for the wallets of every American consumer. Trump’s chaotic and illegal tariff tax made life more expensive and our economy more unstable.”

He added:

“Trump’s illegal tariff tax just collapsed — He tried to govern by decree and stuck families with the bill. Enough chaos. End the trade war.”

Similarly, Senator Elizabeth Warren emphasized the financial toll on households and small businesses.

“No Supreme Court decision can undo the massive damage that Trump’s chaotic tariffs have caused. The American people paid for these tariffs, and the American people should get their money back,” she stated.

In a broader statement, Warren argued that any refunds stemming from the ruling “should end up in the pockets of the millions of Americans and small businesses that were illegally cheated out of their hard-earned money.”

House Budget Committee Ranking Member Brendan Boyle echoed the sentiment:

“This ruling is a victory for every American family paying higher prices because of Trump’s tariff taxes. The Supreme Court rejected Trump’s attempt to impose what amounted to a national sales tax on hardworking Americans.”

Republicans Split Over Executive Power

Republican reaction, however, revealed a party divided between constitutional purists and economic nationalists.

Senator Rand Paul praised the decision as a safeguard against executive overreach.

“In defense of our Republic, the Supreme Court struck down using emergency powers to enact taxes. This ruling will also prevent a future President such as AOC from using emergency powers to enact socialism,” he said.

But Senator Bernie Moreno sharply condemned the Court’s move:

“SCOTUS’s outrageous ruling handcuffs our fight against unfair trade that has devastated American workers for decades. These tariffs protected jobs, revived manufacturing, and forced cheaters like China to pay up,” he noted.

Moreno warned that “globalists win” under the ruling and called for Republicans to codify the tariffs through reconciliation legislation.

Trump Fires Back

Trump himself reportedly responded with a single word during a White House breakfast with governors:

“Disgrace.”

The US President also signaled that his administration has a “backup plan,” hinting at possible efforts to reimpose tariffs through alternative legal authorities such as Section 301 or Section 232.

A Constitutional and Economic Flashpoint

Beyond the immediate political theater, the decision represents a rare rebuke of executive trade authority from a conservative-majority Court.

The ruling reinforces Congress’s constitutional control over taxation and trade regulation, limiting the scope of emergency economic powers under IEEPA.

At the same time, it raises practical questions about potentially billions in tariff refunds and whether lawmakers will attempt to restore elements of Trump’s trade policy through new legislation.

What began as a legal battle over tariffs has evolved into a broader confrontation over presidential power, economic nationalism, and who ultimately controls America’s trade agenda.

“The Supreme Court got it right. But they also did Trump a huge favor, as his tariffs are harming the U.S. economy and are paid by Americans. But since the tariff revenue will now stop and past revenue must be returned, the already rising U.S. budget deficit will soar. Got gold?” Peter Schiff quipped.

The fight is far from over.

The US stock market recovered sharply on February 20, after the Supreme Court struck down President Trump’s tariffs in a landmark 6-3 ruling. The S&P 500 is trading around 6,890 at press time, up 0.45% from yesterday’s close, at the time of writing.

Tech (XLK) leads the rebound on tariff relief while Energy (XLE) gives back early gains despite rising oil prices. Alphabet (GOOGL) stands out, almost independently, with a 3.8% surge as it attempts to break free from a bearish pattern.​​​​​​​​​​​​​​​​

Top US Stock Market News:

Wall Street Recovers From Stagflation Scare As Tariff Ruling Sparks Relief Bounce

Wall Street faced one of its most dramatic intraday reversals on February 20, 2026. The morning opened with panic as the “data deluge” delivered a stagflation-like combination.

Advance Q4 GDP slowed sharply to 1.4% (well below the 2.8% consensus), while Core PCE accelerated to 3.0% YoY, its hottest reading since mid-2025. S&P 500 futures dropped immediately after the 8:30 AM ET release.

But the mood flipped mid-session when the Supreme Court struck down President Trump’s sweeping emergency tariffs in a landmark 6-3 ruling. Markets interpreted the decision as a major deflationary catalyst going forward.

The S&P 500 is trading at approximately 6,890 at press time, up 0.45% from yesterday’s close. Moreover, the index is now flirting with a strong zone near 6,888.

A sustained move above this level opens the path toward 6,959, and clearing that could prime the index for the psychological 7,000 milestone.

On the downside, 6,775 is the key support to watch. A break below that level would invite weakness toward 6,707.

However, upside conviction is not without risk. Experts are already flagging that the tariff ruling may not be the final word — the administration could pursue alternative tariff mechanisms, which could weigh on sentiment as the session progresses.

A move to key resistance still requires roughly a 1% push from current levels.

The Nasdaq leads the recovery, up 172 points (0.76%), and the DOW is up 68 points, at the time of writing.

The CBOE Volatility Index (VIX) dropped sharply, falling approximately 5%. The move below 20 signals that the initial stagflation panic has eased and the market is shifting back toward a cautiously optimistic posture.

The tug-of-war is clear: stagflation data pulling markets down, tariff relief pulling them up. Onto the sectors now.

Tech Rallies While Energy Dips, But Builds Bullish Case

The sector story on February 20, 2026, takes an unexpected turn. The surface numbers tell one story, but the charts tell another.

Technology (XLK) is up 0.36% at $140.72, benefiting from the Supreme Court’s tariff strike-down as lower import costs directly support hardware and semiconductor supply chains.

However, the rally faces a ceiling. XLK attempted to cross above the $141.29 resistance, but sellers stepped in. A daily close above this level is needed to open the path toward $144.78 and eventually the $149–$150 zone.

A failure to hold above $139 would flip the short-term structure bearish. The tariff relief provides the US stock market catalyst, but with Core PCE at 3.0%, reinforcing higher-for-longer rates, tech valuations remain under pressure.

Energy (XLE) tells the opposite story. The sector looked strong as US-Iran tensions pushed oil higher: WTI held above $66 and Brent above $71. But gains faded through the session, with XLE now down 1.09% since yesterday.

Yet the XLE chart tells a more constructive story underneath the red. The ETF appears to be consolidating inside a bullish flag. If the breakout confirms above $55.90, it could target $60.29 — roughly a 10% move.

The full measured move from the previous leg projects a potential 27% rally. A drop below $53.19 would invalidate the setup.

Alphabet (GOOGL) Surges As Bears Lose Grip

Alphabet (GOOGL) is the standout US stock market mover on February 20, 2026, surging approximately 3.8% to trade around $316. The stock has shown sustained buying momentum with no significant upper wick, yet, a sign that sellers have not stepped in to cap the bounce.

The move is notable because Alphabet had been trapped inside a bearish flag pattern after pulling back from its early February highs. Today’s surge is attempting to break down that bearish structure, reversing off the $296–$300 support zone and pushing toward pattern invalidation.

However, Alphabet is not out of the woods yet. A sustained move above $327 — extending to $330 — is needed to fully invalidate the bearish setup and confirm a larger bullish reversal. Until those levels are cleared, the risk of a failed breakout remains real.

On the downside, a drop back below $304 would weaken the breakout attempt and reintroduce bearish pressure. Further weakness under $296 could accelerate selling, potentially re-testing lower supports and resuming the bearish flag pattern — erasing today’s entire gain.

Within Communication Services, Alphabet is leading while Meta also posts gains, as over 51% of stocks are in the green.

While other sectors stabilize with muted moves, Alphabet’s sizable independent rally signals that dip-buyers are aggressively positioning in AI-linked growth names.

Large institutional investors continued to add exposure to crypto treasury companies over the past week, even as bear-market illiquidity forced another round of shakeouts across decentralized finance (DeFi).

The biggest corporate shareholders of Bitmine Immersion Technologies, including Morgan Stanley and Bank of America, increased exposure to the Ether (ETH) treasury company during Q4 2025 despite a broader market sell-off.

Still, ongoing bear-market illiquidity is forcing some protocols to wind down operations, with DeFi lender ZeroLend shutting down. Crypto analytics platform Parsec has also shuttered, citing crypto market volatility as the main reason.

Meanwhile, Bitcoin (BTC) and ETH each rose about 2.6% during the past week, amid mounting outflows from US spot Bitcoin exchange-traded funds (ETFs), which logged three consecutive days of selling leading up to Thursday’s $165 million outflow, Farside Investors data shows.

Ether ETFs started the week with $48 million in inflows on Tuesday, but reversed to log two successive days of outflows, including $41 million in outflows on Wednesday and $130 million on Thursday.

Morgan Stanley, other top holders add Bitmine exposure amid sell-off

The largest shareholders of Bitmine Immersion Technologies (BMNR) stock increased their investments in the leading Ethereum treasury company in the fourth quarter of 2025 despite a wider crypto market crash and poor stock price performance.

Morgan Stanley, the top reported holder, increased its position by about 26% to more than 12.1 million shares, valued at $331 million at the quarter’s end, according to its Form 13F filing with the US Securities and Exchange Commission. ARK Investment Management, the second-biggest holder, increased its stake by about 27% to more than 9.4 million shares worth $256 million, its filing shows.

Several other top institutional holders also increased exposure. BlackRock increased its BMNR holdings by 166%, Goldman Sachs by 588%, Vanguard by 66% and Bank of America by 1,668%.

Wall Street adds BMNR exposure despite 48% stock slide

Each of the top 11 largest shareholders increased exposure to BMNR during Q4 of 2025, including Charles Schwab, Van Eck, Royal Bank of Canada, Citigroup and the Bank of New York Mellon Corporation, according to official filings compiled by crypto investor Collin.

The accumulation came despite a sharp drop in Bitmine’s share price. BMNR fell about 48% in the fourth quarter of 2025 and about 60% over the past six months, trading near $19.90 in premarket action Thursday, according to Google Finance.

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DeFi lender ZeroLend shuts down, blames illiquid chains

Decentralized lending protocol ZeroLend said it is shutting down completely after the blockchains it operates on suffered from low user numbers and liquidity.

“After three years of building and operating the protocol, we have made the difficult decision to wind down operations,” ZeroLend’s founder, known only as “Ryker,” said in a post the protocol shared to X on Monday.

“Despite the team’s continued efforts, it has become clear that the protocol is no longer sustainable in its current form,” he added.

ZeroLend focused its services on Ethereum layer-2 blockchains, once touted by Ethereum co-founder Vitalik Buterin as a central part of the network’s plan to scale and remain competitive.

However, Buterin said earlier this month that his vision for scaling with layer 2s “no longer makes sense,” that many have failed to properly adopt Ethereum’s security, and that scaling should increasingly come from the mainnet and native rollups.

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DerivaDEX debuts Bermuda-licensed derivatives DEX

DerivaDEX has launched a Bermuda-licensed crypto derivatives platform, becoming what it says is the first DAO-governed decentralized exchange to operate under formal regulatory approval.

According to a statement from the platform, the exchange received a T license from the Bermuda Monetary Authority and has begun offering crypto perpetual swaps trading to a limited number of advanced retail and institutional participants.

The BMA’s T, or test license, is issued for a digital asset business seeking to test a proof of concept.

At launch, DerivaDEX supports major crypto perpetual products and said it plans to expand into additional markets, including prediction markets and traditional securities. The company said the platform combines offchain order matching with onchain settlement to Ethereum, while allowing users to retain non-custodial control of funds.

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Parsec shuts down amid ongoing crypto market volatility

Onchain analytics company Parsec is closing down after five years, as crypto trader flows and onchain activity no longer resemble their past configurations.

“Parsec is shutting down,” the company said in an X post on Thursday, while its CEO, Will Sheehan, said the “market zigged while we zagged a few too many times.”

Sheehan added that Parsec’s primary focus on decentralized finance and non-fungible tokens (NFTs) fell out of step with where the industry has now headed.

“Post FTX DeFi spot lending leverage never really came back in the same way, it changed, morphed into something we understood less,” he said, adding that onchain activity changed in a way he never understood.

NFT sales reached about $5.63 billion in 2025, a 37% drawdown from the $8.9 billion recorded in 2024. Average sale prices also declined year-on-year, falling to $96 from $124, according to CryptoSlam data.

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Kraken’s xStocks tops $25 billion in volume with more than 80,000 onchain holders

Kraken’s tokenized equities platform, xStocks, has surpassed $25 billion in total transaction volume less than eight months after launch, underscoring accelerating adoption as tokenization gains traction among mainstream investors.

Kraken disclosed Thursday that the $25 billion figure includes trading across centralized exchanges and decentralized exchanges, as well as minting and redemption activity. The milestone represents a 150% increase since November, when xStocks crossed $10 billion in cumulative transaction volume.

The xStocks tokens are issued by Backed Finance, a regulated asset provider that creates 1:1 backed tokenized representations of publicly traded equities and exchange-traded funds. Kraken serves as a primary distribution and trading venue, while Backed is responsible for structuring and issuing the tokenized instruments.

When xStocks debuted in 2025, it offered more than 60 tokenized equities, including shares tied to major US technology companies like Amazon, Meta Platforms, Nvidia and Tesla.

Kraken said onchain activity has been a key growth driver since launch, with xStocks generating $3.5 billion in onchain trading volume and surpassing 80,000 unique onchain holders.

Unlike trading that occurs solely within centralized exchanges’ internal order books, onchain activity takes place directly on public blockchains, where transactions are transparent and wallets can self-custody assets. 

Growing onchain participation suggests users are not only trading tokenized equities but also integrating them into broader decentralized finance (DeFi) ecosystems.

Kraken said that eight of the 11 largest tokenized equities by unique holder count are now part of the xStocks ecosystem, signaling increased market share in the emerging tokenized equities sector.

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DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.

The layer-1 blockchain Kite (KITE) token rose 38% as the biggest gainer in the top 100, followed by stablecoin payment ecosystem token Stable (STABLE), up over 30% during the past week.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.