Longing for Trump to challenge the Federal Reserve - using cryptocurrency as a breakthrough President Trump and Republican senators are expected to take action that seems aimed at using cryptocurrency policy to achieve a broader goal: ending the independence of the Federal Reserve. As President Trump continues to test the limits of executive power by reshaping various U.S. government agencies, one battle appears to be brewing that will affect the cryptocurrency industry: an impending war with the Federal Reserve, challenging its publicly stated mission of independence. Since the early 1950s, the Federal Reserve has had the final say on key decisions related to the U.S. banking system and monetary policy. Now, the Trump administration and its Republican allies in Congress appear poised to take over some of those decisions - with cryptocurrency-related policy initiatives as the primary avenue. As reported by Decrypt last week, the White House plans to soon issue another executive order focused on cryptocurrency, which may, among other things, direct the Federal Reserve to change its policy of refusing to provide the coveted "master accounts" to so-called "crypto banks" - financial institutions that have banking licenses but also provide crypto custody services for clients. Master accounts allow banks to access the Federal Reserve's financial services, which are crucial for serving large-scale clients. If crypto banks ultimately gain such approval, it would be a major victory for the digital asset industry. Only a few registered deposit-taking crypto banks, such as the Kraken Financial subsidiary of the Kraken cryptocurrency exchange and Caitlin Long's Custodia, would immediately qualify for master accounts. For decades, the approval of master accounts has been the ultimate decision of the Federal Reserve's seven-member Board of Governors. While these governors are appointed by the president, the Federal Reserve has claimed that the executive branch has never publicly overridden their decisions since a 1951 informal agreement that granted the board independence in policymaking. Last month, Trump laid the groundwork to begin unwinding that agreement by signing an executive order declaring he has the authority to determine the Federal Reserve's policies related to "the regulation and supervision of financial institutions." This policy category is likely to include the Federal Reserve's decisions on master accounts. Trump's order does concede that the Federal Reserve will continue to set its own "monetary policy" on sensitive issues like interest rates. But Washington is hatching a plan aimed at stripping the Federal Reserve of its monetary policy independence - and this plan again intersects with the cryptocurrency industry. Last week, Wyoming Republican Senator Cynthia Lummis introduced a bill called the "Bitcoin Standard Act" that would require the U.S. government to purchase around $80 billion worth of Bitcoin to bolster the federal strategic Bitcoin reserve. To pay for this massive cryptocurrency funding, it would primarily be achieved through a scheme that would force the Federal Reserve to reissue its Nixon-era gold certificates at market prices. Since gold has risen around 6,000% in those intervening years, the newly issued gold certificates would theoretically be worth trillions more than the old ones. The Federal Reserve would receive these new, more valuable certificates - but would then immediately have to hand over $80 billion to the Treasury Department to purchase Bitcoin. A congressional source familiar with the thinking behind the "Bitcoin Standard Act" told Decrypt that no one has attempted to leverage such a fundraising mechanism before, as lawmakers and presidents have historically been cautious about explicitly directing the Federal Reserve. But that stance has now changed. "The view behind the Bitcoin Standard Act aligns with the president's view that there is no such thing as an 'independent institution,'" the congressional source said. "The Federal Reserve can be directed, especially through legislation." The Capitol Hill insider added that in recent years, as the politicization of these institutions has become more pronounced, particularly in the politically charged "Operation Choke Point 2.0" crackdown on crypto, Republicans may have grown bolder in taking a harder line on overseeing the policies of federal agencies meant to be independent. Trump is clearly not the first president in modern history to challenge the Federal Reserve's independence. Presidents from both parties have pressured the Federal Reserve to implement or rescind certain policies. In 1965, President Lyndon B. Johnson even personally attacked then-Federal Reserve Chair William McChesney Martin over disagreements on interest rate hikes, as one biographer recounted. But since the 1950s, no president has successfully or meaningfully attempted to wrest key decision-making power away from the Federal Reserve Board - at least not explicitly. If Trump and his congressional allies continue to pursue this goal, and cryptocurrency policy becomes the breakthrough, how might the digital asset industry react? One cryptocurrency lobbyist told Decrypt that the Trump administration appears to be using crypto-related policies as "test cases" to regain control over independent institutions. On one hand, these efforts could deliver important victories that crypto leaders couldn't have dreamed of even a year ago. On the other hand, the same initiatives may not only spark controversial litigation, but also associate the cryptocurrency industry - an industry that has long strived to avoid political polarization - with a precedent that is increasingly challenging the limits of the U.S. Constitution. "I can't quite tell if this is good or bad yet," the crypto lobbyist said, "but we'll take it, right?"