Markets finally breathed a sigh of relief after the U.S. Supreme Court delivered its long-awaited ruling on President Donald Trump’s tariff authority, and traders wasted no time reacting.

On Feb. 20, the Court ruled that Trump exceeded his authority when he imposed sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 law typically reserved for national emergencies.

The decision effectively curbs the administration’s ability to use emergency powers to bypass Congress on trade policy.

The decision has reduced the months-long uncertainty that was looming over the markets for the past couple of months.

Related: Cathie Wood sends hard-nosed response on Trump’s shocking tariffs

It all began with ‘Liberation Day’ 

Trump kicked off his global tariff push on Apr. 2, 2025, a date he dubbed “Liberation Day.” He imposed so-called “reciprocal tariffs” ranging from 10% to 50% on a broad range of countries, from China to Canada. 

He argued that persistent trade deficits constituted a national emergency.

Invoking IEEPA allowed the administration to sidestep Congress in pursuing the tariff agenda.

But the costs quickly mounted. Businesses facing higher import prices and supply chain disruptions joined 12 U.S. states, most led by Democratic governors, in challenging the policy. 

The plaintiffs argued that the president had stretched emergency powers beyond their intended scope.

The Supreme Court finally agreed.

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Risk assets rally across the board

Markets responded immediately after the ruling was announced.

As per CoinGecko, Bitcoin (BTC) rose 1.3% over 24 hours to $67,296.96. Ethereum (ETH) climbed 1.4% to $1,954.59, while XRP gained 1.2% to $1.41. Solana (SOL) outperformed, rising 3.8% to $83.49.

The total crypto market capitalization increased 1.4% overnight to $2.38 trillion.

Crypto-linked equities also flashed green. Shares of MicroStrategy (MSTR), Robinhood (HOOD), and Coinbase (COIN) moved higher, almost 3% to 4%, according to SoSo Value data.

One of the biggest jumps witnessed was Abits Group Inc. (ABTS), a Bitcoin miner, which surged as much as 100%.

Traditional markets followed suit.

The Dow Jones Industrial Average rose 93.81 points, or 0.2%, reversing a 200-point loss earlier in the session that had been triggered by disappointing economic data. The S&P 500 gained 0.3%, while the Nasdaq Composite advanced 0.5%.

For now, at least, markets are treating the ruling as a green light.

Related: Apple CEO had a surprising way to deal with Trump's tariff policy