Will Federal Reserve Chairman Powell stop the United States from accumulating Bitcoin reserves?

Federal Reserve Chairman Powell made it clear at the press conference following the monetary policy meeting that the Federal Reserve has no intention of participating in any government plans to stockpile Bitcoin. He emphasized that such matters fall within the jurisdiction of Congress, and the Federal Reserve does not seek to change existing laws to allow for the holding of Bitcoin. Powell's remarks immediately triggered market turmoil, with Bitcoin prices quickly retreating from their highs earlier in the week. According to market prediction platform Polymarket, the likelihood of a Bitcoin strategic reserve dropped from a peak of 40% on the 18th to 34% following Powell's speech. The overall market capitalization of the cryptocurrency market also plummeted, with an estimated loss of about 7.5%.

The Federal Reserve enjoys a high degree of independence in monetary policy and national economic stability, but it cannot exercise a "veto" in the decision-making process for establishing a BSR.

If the Trump administration wants to quickly establish a BSR, the most direct way would be to sign an executive order after taking office, instructing the U.S. Treasury to use the Exchange Stabilization Fund (ESF) to directly purchase Bitcoin. The ESF is a special fund managed by the U.S. Treasury, primarily used for foreign exchange market intervention, supporting dollar stability, and responding to international financial crises. It currently holds assets such as the dollar, Special Drawing Rights (SDR), and gold. The operations of this fund are not subject to Congressional control, giving the President and the Treasury significant autonomy in its use. Theoretically, the President could directly instruct the Treasury to adjust the allocation of ESF funds through an executive order to purchase or reserve specific assets, bypassing Congress's direct appropriation approval and reducing political resistance. The executive order recently drafted by the Bitcoin Policy Institute aims to establish a BSR in this manner.

In summary: I believe that with his style of governance, Trump is likely to establish a Bitcoin reserve, but it will also take time, don’t you think?