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

The latest statement from Federal Reserve Chairman Powell has shaken the financial markets! He clearly stated that the Federal Reserve does not intend to participate in any government accumulation of Bitcoin and emphasized that this matter should be decided by Congress, while the Federal Reserve does not plan to change existing laws to support the Bitcoin reserve. Once this statement was released, Bitcoin's price immediately fell, and market expectations changed accordingly— the possibility of a Bitcoin strategic reserve dropped from 40% to 34%.

But here’s the question: Does the Federal Reserve really have the power to stop the Bitcoin reserve plan? Can the Trump administration bypass this obstacle and force the establishment of a Bitcoin reserve? Let’s analyze it in depth.

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

First, it must be clear that the Federal Reserve does not have absolute power to stop the implementation of the Bitcoin reserve plan. Although the Federal Reserve enjoys extensive 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 want to intervene in the management of this emerging asset, but that does not equate to a 'veto' of the possibility of the Bitcoin reserve plan. After all, the final decision-making power lies 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 pushing the Bitcoin reserve plan through executive orders. Specifically, the Trump administration could direct the Treasury to purchase Bitcoin through the **Exchange Stabilization Fund (ESF)**, thereby bypassing congressional approval.

✅ Advantages: This approach does not require going through complicated legislative procedures, and can be executed quickly, avoiding delays caused by political opposition.

⚠️ Challenges: The sustainability of this method is at risk. Future administrations can revoke executive orders at any time and change existing policies, meaning that 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 truly 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, ensuring that its future is not affected by political changes.

However, this road 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 layers of approval by the Senate and House of Representatives, as well as the President's signature to be completed. This means that if we establish a Bitcoin reserve through legislation, we may have to wait for several years.

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

If relying solely on Congress and executive orders cannot quickly advance the Bitcoin reserve plan, is it possible to push it forward through cooperation between the Federal Reserve and the Treasury?

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

Another option is for the Treasury to establish a dedicated fund to invest in Bitcoin, treating it as part of fiscal investment. This also requires congressional approval, but unlike direct operations by the Federal Reserve, this is more likely to become a middle-ground solution.

5. The future of the Bitcoin reserve plan: Where is it headed?

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

📊 Key point: If the Bitcoin reserve plan is ultimately implemented, it will become a significant breakthrough in the history of the global economy, not only affecting the status of Bitcoin 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 lies with Congress.

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

  • Legislative action by Congress is the most reliable way, but it requires overcoming significant political resistance.

  • Collaboration between the Federal Reserve and the Treasury could also become a middle ground, especially when political consensus is difficult to achieve.

🔮 Future outlook:
Although the Federal Reserve has already expressed 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 contest of power and innovation has just begun!

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