Powell Rules Out Crypto Purchases
The post Powell Rules Out Crypto Purchases appeared on BitcoinEthereumNews.com. In a significant declaration that reverberated across financial markets, Federal Reserve Chair Jerome Powell has definitively stated that the Federal Reserve neither possesses the legal authority nor intends to seek it, to purchase cryptocurrency. This unambiguous stance, reported by Walter Bloomberg on X, provides crucial clarity regarding the U.S. central bank’s position on digital assets and its role in the evolving financial landscape. Understanding the Federal Reserve’s Position on Cryptocurrency The news that the Federal Reserve will not be acquiring cryptocurrencies might not come as a shock to seasoned market observers, but its explicit nature from the very top of the U.S. central banking system underscores a deeply entrenched cautious approach. For years, the Fed has been carefully monitoring the rise of digital assets, acknowledging their innovation while also highlighting potential risks to financial stability and consumer protection. Powell’s statement effectively draws a clear line in the sand: the Fed’s mandate is centered on maintaining price stability, maximizing employment, and ensuring the stability of the financial system. Purchasing volatile and largely unregulated assets like Bitcoin or Ethereum falls well outside its traditional purview and current legal framework. The Federal Reserve Act, which governs the Fed’s operations, outlines specific types of assets the central bank is authorized to buy, primarily U.S. Treasury securities and agency mortgage-backed securities, as tools for conducting Monetary Policy. Key Takeaways from Powell’s Statement: Legal Constraints: The Fed currently lacks the statutory authority to purchase cryptocurrencies. No Intent to Seek Authority: This is not merely a current limitation but a declared policy choice, indicating no immediate plans to lobby for such powers. Focus on Mandate: Reinforces the Fed’s commitment to its core responsibilities of economic stability, rather than engaging in speculative asset acquisition. Why Jerome Powell’s Statement Matters for Digital Assets The words of Jerome Powell carry…
The post Powell Rules Out Crypto Purchases appeared on BitcoinEthereumNews.com.
In a significant declaration that reverberated across financial markets, Federal Reserve Chair Jerome Powell has definitively stated that the Federal Reserve neither possesses the legal authority nor intends to seek it, to purchase cryptocurrency. This unambiguous stance, reported by Walter Bloomberg on X, provides crucial clarity regarding the U.S. central bank’s position on digital assets and its role in the evolving financial landscape. Understanding the Federal Reserve’s Position on Cryptocurrency The news that the Federal Reserve will not be acquiring cryptocurrencies might not come as a shock to seasoned market observers, but its explicit nature from the very top of the U.S. central banking system underscores a deeply entrenched cautious approach. For years, the Fed has been carefully monitoring the rise of digital assets, acknowledging their innovation while also highlighting potential risks to financial stability and consumer protection. Powell’s statement effectively draws a clear line in the sand: the Fed’s mandate is centered on maintaining price stability, maximizing employment, and ensuring the stability of the financial system. Purchasing volatile and largely unregulated assets like Bitcoin or Ethereum falls well outside its traditional purview and current legal framework. The Federal Reserve Act, which governs the Fed’s operations, outlines specific types of assets the central bank is authorized to buy, primarily U.S. Treasury securities and agency mortgage-backed securities, as tools for conducting Monetary Policy. Key Takeaways from Powell’s Statement: Legal Constraints: The Fed currently lacks the statutory authority to purchase cryptocurrencies. No Intent to Seek Authority: This is not merely a current limitation but a declared policy choice, indicating no immediate plans to lobby for such powers. Focus on Mandate: Reinforces the Fed’s commitment to its core responsibilities of economic stability, rather than engaging in speculative asset acquisition. Why Jerome Powell’s Statement Matters for Digital Assets The words of Jerome Powell carry…
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