You are correct...something that most miss. The FED is NOT the US Government.

We are dealing with bankers so I would guess that the FED is going to be against cryptos. It is a threat to their monopoly. What do they do about all the debt when they cant sell their bonds since the reserve currency is not as popular?

The central banks had a monopoly on the currencies of the world for a long time. Now we are seeing an alternative and they dont like it. Ultimately, they are going to do what they can do to try and stop it but will fail. A decentralized world is on its way due to technology. Even if the major corporations and governments resist, the fact that computer equipment is cheap enough for average people to get it means that worldwide networks form from those who against the control mechanisms. And that is exactly what we are seeing.