{"id":18091,"date":"2024-12-19T09:14:14","date_gmt":"2024-12-19T09:14:14","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2024\/12\/19\/trumps-u-s-bitcoin-reserve-idea-hits-a-wall-with-feds-opposition\/"},"modified":"2024-12-19T09:14:14","modified_gmt":"2024-12-19T09:14:14","slug":"trumps-u-s-bitcoin-reserve-idea-hits-a-wall-with-feds-opposition","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2024\/12\/19\/trumps-u-s-bitcoin-reserve-idea-hits-a-wall-with-feds-opposition\/","title":{"rendered":"Trump\u2019s U.S. Bitcoin Reserve Idea Hits a Wall with Fed\u2019s Opposition"},"content":{"rendered":"

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Federal Reserve and Bitcoin: No Interest in Stockpiling<\/b><\/h2>\n

Federal Reserve Chair Jerome Powell clarified that the U.S. central bank has no intention of stockpiling bitcoin. During a press conference following the latest policy meeting, Powell stated that the Fed is not allowed to own bitcoin. He made it clear that this issue is something for Congress to address, not for the Fed. This marks a firm stance against the idea of the U.S. government accumulating large amounts of bitcoin, particularly in the context of a potential government-backed Bitcoin reserve.<\/span><\/p>\n

The idea of a \u201cStrategic Bitcoin Reserve\u201d has gained traction since President-elect Donald Trump\u2019s election victory. The concept, which was suggested by Trump, proposes that the U.S. government could stockpile bitcoin, potentially using assets seized from criminals. However, specifics about how this reserve would work remain unclear. Some have speculated that the reserve could involve buying up to 200,000 bitcoins annually, eventually reaching a total of 1 million tokens. This would be funded through the U.S. Treasury\u2019s gold holdings and Fed bank deposits.<\/span><\/p>\n

Bitcoin<\/span><\/a> has been on an upward trend since Trump\u2019s victory, with its value more than doubling this year. The currency has surged past $100,000, fueled by optimism over Trump\u2019s crypto-friendly policies. However, while bitcoin and other crypto assets have gained popularity, they are still largely seen as speculative investments rather than practical alternatives to traditional currency. The volatility of bitcoin and its 15-year history of large price swings make it less effective as a stable store of value or a reliable unit of exchange, two critical aspects of a reserve currency.<\/span><\/p>\n

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Source: CoinGecko<\/p>\n<\/div>\n

The proposal to create a Strategic Bitcoin Reserve faces several legal and regulatory hurdles. For one, it would likely require approval from Congress. Additionally, such a move could necessitate new Treasury debt and raise questions about how the government would fund the reserve. Barclays analysts have pointed out that creating a reserve of this size would likely encounter strong resistance from the Fed, given its current stance on crypto assets. Powell\u2019s remarks emphasize that the central bank is not looking for changes to its legal position regarding bitcoin.<\/span><\/p>\n

Powell and other Fed officials have expressed skepticism toward cryptocurrencies. Although the Fed has not pushed for its own digital dollar, it has focused on monitoring how crypto assets interact with the banking sector. Powell explained that the Fed\u2019s main concern is ensuring that the relationship between crypto businesses and banks does not pose a threat to the stability of the banking system. However, the Fed does not directly regulate crypto assets themselves, leaving that responsibility to other agencies.<\/span><\/p>\n

Trump\u2019s Plans for Crypto and AI Leadership<\/b><\/h2>\n

As part of his administration\u2019s focus on crypto, Trump plans to appoint former PayPal executive David Sacks as the White House\u2019s AI and Crypto Czar. He also intends to place pro-crypto consultant Paul Atkins in charge of the Securities and Exchange Commission. This signals a shift toward a more hands-off approach from the government on crypto matters. However, the details about what this new leadership will mean for the future of crypto regulation remain to be seen.<\/span><\/p>\n

In summary, the Federal Reserve has made it clear that it does not want to be involved in the creation of a Bitcoin reserve. While the idea of a government-backed reserve has gained attention, it faces significant legal and regulatory challenges. The Fed\u2019s focus remains on ensuring that crypto assets do not disrupt the banking system, while other agencies, including those within Trump\u2019s incoming administration, may take the lead on crypto policy.<\/span><\/p>\n<\/p><\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Federal Reserve and Bitcoin: No Interest in Stockpiling Federal Reserve Chair Jerome Powell clarified that the U.S. central bank has no intention of stockpiling bitcoin. During a press conference following the latest policy meeting, Powell stated that the Fed is not allowed to own bitcoin. He made it clear that this issue is something for […]<\/p>\n","protected":false},"author":1,"featured_media":18092,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[9],"tags":[21],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/nftevening.com\/wp-content\/uploads\/2024\/12\/unnamed-2024-12-19T160754.153.jpg","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/18091"}],"collection":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=18091"}],"version-history":[{"count":0,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/18091\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/18092"}],"wp:attachment":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=18091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=18091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=18091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}