The Federal Reserve is saying it like it is.Bitcoin is like regular fiat currency in three ways;
1) Whilst Bitcoin has no intrinsic value, neither do fiat currencies, such as the US Dollar, the Euro etc, unlike gold or silver.
2) Bitcoin is capped to a supply of 21 million and the supply of fiat money has to be limited in order to maintain its value.
3) Bitcoin is electronic cash and payments can be sent from one party to another without the any involvement from a financial institution.