🚨 The Federal Reserve signals a 'red light'! The Bitcoin reserve plan faces challenges!

The latest statement from Fed Chairman Powell has shaken financial markets! He clearly stated that the Federal Reserve has no intention of participating in any government accumulation of Bitcoin and emphasized that this matter should be decided by Congress, while the Federal Reserve does not intend to change existing laws to support the Bitcoin reserve. Once this statement was released, Bitcoin's price immediately fell, and market expectations also changed— the possibility of a Bitcoin strategic reserve dropped from 40% to 34%.

But the question arises: Does the Federal Reserve actually have the power to block the Bitcoin reserve plan? Can the Trump administration bypass this obstacle and force the establishment of a Bitcoin reserve? Let's analyze this in depth.

1. What does the Federal Reserve's 'veto' really mean?

First, it is important to clarify that the Federal Reserve does not have absolute power to prevent the implementation of the Bitcoin reserve plan. Although the Federal Reserve enjoys broad independence in U.S. economic and monetary policy, it does not directly control how the government holds Bitcoin or other assets. In other words, whether the Bitcoin reserve plan can be implemented ultimately depends on Congress's legislative authority.

Powell's statement essentially reflects the Federal Reserve's position—it does not wish to intervene in the management of this emerging asset, but this does not equate to a 'veto' of the Bitcoin reserve plan's possibility. After all, the final decision rests with Congress, not the Federal Reserve.

2. Can Trump bypass the Federal Reserve through executive orders?

In the face of the Federal Reserve's refusal, the Trump administration might take another path: directly promoting the Bitcoin reserve plan through executive orders. Specifically, the Trump administration could instruct the Treasury to purchase Bitcoin through the **Exchange Stabilization Fund (ESF)**, thereby bypassing congressional approval.

✅ Advantages: This approach does not require going through a complex legislative process, can be executed quickly, and avoids delays caused by political opposition.

⚠️ Challenges: This method carries risks regarding sustainability. Future administrations can revoke executive orders at any time and change existing policies, meaning the stability of the Bitcoin reserve plan is uncertain.

3. A legitimate and stable path: Is congressional legislation the only way out?

If the Trump administration genuinely wants to establish a long-term, stable Bitcoin reserve, congressional legislation is undoubtedly the most suitable approach. By incorporating Bitcoin into the **'Strategic Reserve Act'**, it can provide a clear legal basis for its future, ensuring it is not affected by political changes.

However, this path is full of challenges, as passing legislation requires overcoming multiple political obstacles. Currently, the "U.S. Bitcoin Strategic Reserve Act" proposed by Senator Cynthia Lummis is under review, but it needs to go through multiple approvals in the Senate and House of Representatives, and also requires the President's signature to be finalized. This means that if legislation is passed to establish a Bitcoin reserve, we may have to wait several years.

4. Federal Reserve and Treasury: Is it possible to collaborate to achieve a Bitcoin reserve?

If neither Congress nor executive orders can rapidly advance the Bitcoin reserve plan, is it possible for the Federal Reserve and the Treasury to work together to promote it?

One possibility is that the Federal Reserve purchases Bitcoin through open market operations and adds it to its balance sheet. However, according to Powell's latest statement, it seems that this operation does not align with the Federal Reserve's position.

Another option is for the Treasury to establish a dedicated fund to invest in Bitcoin and include it as part of its financial investments. This also requires congressional approval, but unlike direct actions by the Federal Reserve, it is more likely to become a middle ground.

5. The Future of the Bitcoin Reserve Plan: Where to Go?

Despite the Federal Reserve's denial casting a shadow over the prospects of the Bitcoin reserve plan, the Trump administration's stance remains firm, and the market is full of expectations for this plan.

📊 Key Point: If the Bitcoin reserve plan is ultimately implemented, it will represent a significant breakthrough in global economic history, affecting not only Bitcoin's status but also potentially reshaping the global financial system.

Summary:

  • The Federal Reserve's 'veto' does not mean that the Bitcoin reserve plan is completely blocked; the final decision rests with Congress.

  • The Trump administration can bypass the Federal Reserve through executive orders, but the sustainability of this approach is uncertain.

  • Congressional legislation is the most secure method, but it requires overcoming significant political resistance.

  • Collaboration between the Federal Reserve and the Treasury Department could also become a middle ground, especially when it is politically difficult to reach a consensus.

🔮 Future Outlook:
Although the Federal Reserve has already stated its position, the realization of the Bitcoin reserve plan is still full of variables. The interplay between the U.S. government, Congress, and the market will determine whether Bitcoin can become part of the global financial system. This battle between power and innovation has just begun!

💬 What do you think about the Bitcoin reserve plan? Feel free to share your thoughts in the comments!#美联储主席鲍威尔讲话