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FEDERAL RESERVE CHAIR BACKS BITCOIN AS ‘DIGITAL GOLD’—A TURNING POINT FOR CRYPTO?
Despite the challenging macroeconomic environment, Federal Reserve chairman Jerome Powell has revised his stance on Bitcoin, which has given investors cautious hope for cryptocurrencies.
Comparing Bitcoin to gold during an appearance at the New York Times DealBook Summit, Powell characterized the flagship crypto as a “speculative asset” rather than a direct competitor to the US dollar.
This is a significant departure from his previous dismissive stance toward the world’s largest cryptocurrency, which has a market capitalization of approximately $1.4 trillion.
Powell’s Changing Viewpoint On Bitcoin
Binance founder Changpeng Zhao (CZ) promptly emphasized this development as “an improvement to the previous narrative,” indicating that industry leaders were aware of Powell’s rhetorical shift.
@ Newshounds News™
Source: Boiitcoinist
Powell Interview, Audio: X . Com
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TEXAS SENATE’S BITCOIN RESERVE HEARING FEBRUARY 18: A GAME CHANGER OR SYMBOLIC MOVE?
The Texas Senate is all set to hold a public hearing, Tuesday, to discuss creating a Bitcoin reserve. However, market analysts believe that the move may be symbolic unless the state announces a clear investment plan.
The first public hearing for the establishment of a potential strategic Bitcoin reserve in Texas is scheduled for Feb. 18, less than a week after the bill was received by the Secretary of the Senate, as per the Texas government’s website.
“A Symbolic Move”
Despite being a positive step for Bitcoin adoption, the hearing may only represent a ‘symbolic move’ for cryptocurrency markets, according to Iliya Kalchev, dispatch analyst at Nexo.
“Texas considering Bitcoin as a reserve asset is another chess move in BTC’s march toward institutional legitimacy, but state-level initiatives often make ripples, not waves, compared to ETF inflows or corporate treasury allocations,” Kalchev noted.
Kalchev pointed out that unless Texas announces specific actions, like buying Bitcoin soon or a major policy shift, the market won’t react strongly. This is because Texas is already known for its pro-crypto stance, and hence the news itself won’t be surprising.
Lately, Bitcoin has lacked upside momentum, trading under the $100,000 for over nine days since Feb. 7. COO of Bitget, believes that Bitcoin will continue to face pressure in the short term due to the ongoing trade tensions between the US and China.
Upcoming Events Could Reignite Interest
Nevertheless, Key events this week like the upcoming FOMC minutes could reignite the markets. The Federal Reserve will release the minutes from its January meeting on Wednesday, where it decided to keep interest rates steady. Besides, Trump’s tariffs are also adding inflationary pressure.
While the positive developments surrounding Bitcoin reserve legislation signal growing institutional adoption, Kalchev noted that macro forces like fed policy and regulatory shifts will ultimately shape Bitcoin’s trajectory.
Texas’ push for a Bitcoin reserve marks a significant shift in both economic and political landscapes, with other states following suit. Kentucky, for example, has become the 16th state to propose legislation that would allocate up to 10% of excess state reserves into digital assets. These moves highlight the growing trend toward crypto adoption across the U.S.
@ Newshounds News™
Source: Coinpedia
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FED GOVERNOR CALLS FOR REGULATORY FRAMEWORK ALLOWING BANKS AND INSTITUTIONS TO ISSUE STABLECOINS
A member of The Board of Governors of the U.S. Federal Reserve is calling for laws that would allow banks and institutions to issue dollar-pegged digital assets.
In a speech given by Christopher J. Waller at a recent conference in San Francisco, the Fed governor argues for a regulatory framework that would allow blue-chip financial institutions to issue regulated stablecoins.
According to Waller, stablecoins could be extremely beneficial to the financial system because they have numerous use cases such as broadening access to US dollars, easy cross-border payments and retail payments.
“The first theme I will explore is one that I have discussed in the past – the safety and soundness of stablecoins and the need for a clear regulatory regime for stablecoins in the United States…
This framework should allow both non-banks and banks to issue regulated stablecoins and should consider the effects of regulation on the payments landscape, including competing payment instruments.”
However, Waller says there are potential risks associated with stablecoins, including the possibility that they could become de-pegged from the fiat currency they are linked to.
“Stablecoins are forms of private money and, like any form of private money, are subject to run risk, and we have seen ‘de-pegs’ of some stablecoins in recent years. Additionally, all payment systems face the risk of failure, and stablecoins are subject to clearing, settlement, and other payment system risks as well.”
Earlier this month, Republican Senator Bill Hagerty of Tennessee proposed the GENIUS Act, a bill to regulate and define stablecoins as well as establish licensing and reserve requirements for issuer.
@ Newshounds News™
Source: DailyHodl
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