The FED rejects Bitcoin, but America still has other paths!
Last week, FED Chairman Jerome Powell seemed to "pour cold water" on the hopes of the crypto community when he declared that the Fed does not have the authority to accumulate Bitcoin and asserted that this is a matter for Congress. However, the door for the U.S. to establish a Bitcoin reserve is not completely closed yet.
According to experts, there are two main feasible directions:
1️⃣ Executive Order: President Trump could direct the Treasury Department to use the Exchange Stabilization Fund (ESF) to purchase Bitcoin. This is the quickest route as it does not require Congressional approval. But the downside is that it can easily be reversed by the next administration, so sustainability is not high.
2️⃣ Play the long game with Congress: Congress could pass an official law, making Bitcoin a national reserve asset. This method creates a solid legal foundation, but it will take a lot of time and face considerable political difficulties.
In summary, even though the FED shakes its head, it does not mean that the Bitcoin reserve plan is completely rejected. Looking at the recent moves from the Trump administration, it seems they are still seeking ways to support this plan.