Key Takeaways
- Senator Mike Lee introduced a bill to abolish the Federal Reserve.
- Trump called for rate cuts and introduced a Strategic Bitcoin Reserve plan.
- The Bitcoin reserve would start with assets from criminal forfeitures.
Senator Mike Lee introduced legislation to abolish the Federal Reserve as former President Trump called for immediate interest rate cuts and advanced a federal Bitcoin reserve strategy, signaling a potential shift in U.S. monetary governance.
Federal Reserve Board Abolition Act
Lee’s Federal Reserve Board Abolition Act, co-sponsored by Representative Thomas Massie, argues that the Fed acts as an “economic manipulator.”
Though unlikely to pass, the bill reflects a rising interest in rethinking centralized monetary policy.
Trump’s call for rate cuts
At the same time, President Trump is pressing for the Fed to ease rates. In a March 21 Truth Social post, he said:
The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy.
He suggested that prices on essentials like gas and groceries have dropped.
Strategic Bitcoin Reserve
Trump’s administration is also working on a Strategic Bitcoin Reserve through executive orders, framing Bitcoin as a national strategic asset.
The reserve would begin with bitcoin from criminal asset forfeitures and could expand through gold-backed strategies or revenue from visa programs.
Cost-neutral plan
Bo Hines, who leads the Presidential Working Group on Digital Assets, said the plan aims to be cost-neutral and may involve revaluing dormant gold certificates from the 1970s.
Inclusion of Bitcoin in National Reserves
If implemented, the initiative would mark the first formal step toward including Bitcoin in national financial reserves.
The administration’s broader effort also includes increasing executive control over independent agencies like the Fed, raising concerns about market stability and political interference in monetary policy.
