On March 20, 2025, the Donald Trump administration and Republican allies in the Senate appear to be using crypto policy as a 'spear' to challenge the autonomy of the Federal Reserve (Fed). From demanding the Fed grant master accounts to crypto banks to a bill mandating the purchase of 80 billion USD in Bitcoin, Trump is aiming to eliminate the independence of the Fed – a status that has not been broken since 1951. Is this a golden opportunity or a dangerous trap for the crypto industry?
Trump And The War Against The Fed
Since the 1950s, #Fed – with a 7-member council appointed by the President – has had the final authority over US monetary and banking policy without direct intervention from the government. However, Trump wants to change that. Last month, he signed an executive order declaring the right to adjust the policy of 'overseeing and regulating financial institutions' of the Fed, including granting master accounts to crypto banks – something the Fed has long denied.
According to Decrypt, the White House is about to issue another order that could force the Fed to change its policy, allowing crypto banks like Kraken Financial or Custodia to access Fed financial services. A master account is the 'holy grail' for these organizations, helping to serve large-scale customers, marking a major victory for the crypto industry if successful.
Bitcoin Bill: 80 Billion USD From Fed's Gold
Senator Cynthia Lummis (R-WY) introduced #BITCOINACT last week, forcing the US government to buy 80 billion USD in Bitcoin to establish a Strategic Bitcoin Reserve. The source of funds? Revaluing Fed's gold certificates from Nixon's era at current market prices. With gold rising 6,000% since the 1970s, the new certificates are worth hundreds of billions of USD. The Fed will receive these certificates but must immediately transfer 80 billion USD to the Treasury to purchase BTC.
A congressional source told Decrypt: 'The perspective behind the Bitcoin Act aligns with $TRUMP – no agency is truly independent. The Fed can be directed, especially through legislation.' This breaks the precedent, as both Congress and the President have long hesitated to intervene directly in the Fed.
Crypto: 'Spear' Testing Power
Trump is not the first President to challenge the Fed. In 1965, Lyndon Johnson once attacked Fed Chairman William McChesney Martin over interest rate disagreements. But since 1951, no one has publicly stripped the Fed of its power as clearly as Trump. A crypto advocate told Decrypt: 'The #TRUMP administration is using crypto policy as a 'test' to regain control of independent agencies.'
Why are Republicans being more aggressive? Congressional sources suggest that the 'politicization' of agencies like the Fed – such as the 'Operation Chokepoint 2.0' campaign against crypto – has pushed them to act. For Trump, crypto is both a tool and a target in a larger war.
Impact on the Crypto Industry
Opportunity: If the Fed is forced to grant master accounts, crypto banks will explode, increasing the legitimacy and scale of the industry. The Bitcoin Act, if passed, will drive BTC prices (~85,208 USD, March 19) up as supply is locked.
Risk: These moves could lead to fierce litigation and tie crypto to Trump's controversial agenda, putting the capital industry in a difficult position to avoid politicization. A crypto advocate said: 'I don't know if it's good or bad, but we will accept it.'
Conclusion: Is Crypto an Ally or a Pawn?
Trump is turning crypto into a weapon against the Fed, from master accounts to an 80 billion USD Bitcoin reserve. If successful, the crypto industry will mark an unprecedented victory; but if it fails, it could get caught in legal and political crosshairs. Will Bitcoin and crypto banks be the 'spear' that breaks the independence of the Fed, or just pawns in Trump's power game? The advocate concludes: 'We will wait and see.' And so will the entire crypto world.
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