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Donald Trump’s ambitious pledge to establish a strategic Bitcoin reserve has sparked fervent optimism within the cryptocurrency community. His commitment to this initiative was made during a recent address at the Bitcoin 2024 conference in Nashville, where he expressed his enthusiasm for a government-backed Bitcoin stash.
However, Jerome Powell’s latest remarks have created uncertainty and doubt regarding the feasibility of such an endeavor. The Federal Reserve Chairman stated unequivocally that they are not authorized to own Bitcoin, citing the Federal Reserve Act as justification for their stance.
Despite this apparent roadblock, it is crucial to consider whether Trump can still implement his vision without Fed cooperation. It appears that the President-elect may be able to bypass the central bank by leveraging the Exchange Stabilization Fund (ESF) within the U.S. Treasury Department.
The ESF was created in 1934 as a means for the government to stabilize currency markets, particularly during times of financial turmoil or crises. Given its purpose and the fact that it is not governed by Federal Reserve regulations, the potential exists for Trump to utilize this fund to purchase Bitcoin directly, thereby circumventing the Fed.
It remains unclear what specific measures Trump would need to take in order to execute his plan, but one possibility could be issuing an executive order upon taking office, directing the U.S. Treasury Department to utilize the ESF for direct BTC purchases.
While it is uncertain whether this path will be taken or not, it is undeniable that Trump’s bold move has piqued interest and hope within the cryptocurrency community.
Source: ambcrypto.com
