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US Fed Chair Jerome Powell Breaks Silence on Bitcoin Strategic Reserve
In a rare press conference, Federal Reserve Chair Jerome Powell has dismissed any prospects of the central bank adding Bitcoin to its balance sheet, citing legal constraints under the Federal Reserve Act. The statement has sent shockwaves through the cryptocurrency market, causing a 5.9% decline in Bitcoin’s value.
Powell emphasized that the institution is not pursuing legislative changes to allow for such an action. “We’re not allowed to own Bitcoin,” he explained. “The Federal Reserve Act outlines what we can hold, and we’re not considering any amendments to that law. Changing the law is something for Congress to consider, but it’s not something we’re looking at.”
This announcement comes amid growing pressure from President-elect Donald Trump, who has repeatedly advocated for the establishment of a Bitcoin reserve for the United States. In a recent address, Trump reiterated his commitment to staying ahead in the global crypto space and emphasized the importance of taking control.
“We don’t want other nations, like China, taking the lead while we stand by,” he declared. “We need to be ahead.”
The U.S. government currently holds 212,847 Bitcoin, valued at over $22 billion, primarily due to law enforcement seizures. However, it remains unclear whether Trump’s proposed reserve would incorporate these existing holdings or necessitate new acquisitions from the market.
Despite the price decline following Powell’s remarks, blockchain analytics firm Santiment highlighted Bitcoin’s resilience. In a recent analysis, the firm stated that the cryptocurrency has demonstrated an ability to “remain above $100K despite Powell’s comments and market volatility.”
Source: www.cryptonewsz.com
