Let's first look at the responsibilities of the Federal Reserve and the President of the United States.
Federal Reserve: Achieve relevant monetary policy through three main means (open market operations, setting bank reserve ratios, approving the discount rates requested by the Federal Reserve Banks).
Oversee and guide the activities of the Federal Reserve Banks.
Oversee domestic banks in the United States, as well as the activities of member banks abroad and foreign banks in the United States.
Approve the budgets and expenditures of the Federal Reserve Banks.
Appoint three of the nine directors of each Federal Reserve Bank.
Approve the nominees for the presidents of the Federal Reserve Banks as proposed by their boards.
Exercise the rights as the national payment system, responsible for ensuring the implementation of consumer credit-related laws.
The Federal Reserve is subject to Congressional oversight, and Congress is the highest authority for all financial regulatory agencies, responsible for formulating financial regulations and policies.
President of the United States:
He is just the director of the U.S. federal government's 'Office of Management and Budget,' responsible for overseeing the day-to-day affairs of the government, deciding government departments, and making appointments and dismissals. The President of the United States is subject to checks and balances from the Supreme Court and Congress.
Previously, Powell clearly stated that the Federal Reserve has no intention of participating in the government's accumulation of Bitcoin, resulting in a drop in Bitcoin's value. From the responsibilities of the Federal Reserve and the President of the United States, it shows that the Federal Reserve can choose not to participate. If Congress intervenes to amend the law, it can enable the Federal Reserve to act. At the same time, the President can also work through Congress to establish relevant laws allowing the Treasury to manage Bitcoin reserves. The President has the authority to appoint the Secretary of the Treasury. If Congress disagrees with the legislation, the President can directly instruct the Treasury to use the Foreign Exchange Stabilization Fund to purchase Bitcoin. This order has a flaw in that if Trump leaves office, the next President can cancel it, which can be seen as a short-term positive. For long-term benefits, it is still necessary to legislate through Congress to include Bitcoin in the (Strategic Reserve Act) or similar legislation for more favorable long-term prospects.
If Trump comes to power, he will definitely implement this strategic reserve, which will be a significant positive for Bitcoin. If the national team enters the market, Bitcoin's price will not stay at its current level, and we could at least see it rise above 200,000.
