In the ongoing debate over a strategic Bitcoin reserve in the US, a Fed official affirmed the legal restrictions on including Bitcoin in the Fed's balance sheet.
Legal Barriers to a Bitcoin Reserve
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, clarified on January 31, 2025, about the legal constraints facing the Fed regarding holding Bitcoin in its balance sheet. This aligns with prior statements by Fed Chair Jerome Powell, who voiced concerns about Bitcoin's reliability as a store of value due to its volatility. Under current law, Bitcoin is excluded from the potential reserve assets for the Fed.
State-Level and Global Initiative
Despite the federal stance, several U.S. states like Texas, Florida, and Ohio are reportedly exploring the concept of local Bitcoin reserves. On the global stage, European Central Bank President Christine Lagarde has expressed confidence that Bitcoin will not be part of the EU's reserves.
While federal legal restrictions remain firm, the conversation is not static, which may lead to shifts in approach to digital assets both on the domestic and international fronts.
