When asked about the Strategic Bitcoin Reserve at a press conference, Jerome Powell stated that they are not allowed to own Bitcoin and they do not support changing the law. The strategic reserve is a critical resource reserve that can be released during times of crisis or supply disruption. The most famous example is the United States Strategic Petroleum Reserve, the world's largest emergency crude oil supply, established by Congress in 1975 after the Arab oil embargo of 1973-74 crippled the U.S. economy.
Presidents have used this reserve to stabilize the oil market during wartime or when storms attack U.S. oil infrastructure in the Gulf of Mexico.
Analysts and legal experts are divided on whether Trump can use his executive powers to create the reserve or if congressional legislation is needed. Some argue that Trump could create the reserve through an executive order directing the U.S. Treasury's Exchange Stabilization Fund, which could be used to buy or sell foreign currency and could also be used to hold Bitcoin.
According to data, this reserve could also include Bitcoin that the government has seized from criminals, equivalent to about 200,000 tokens, worth approximately 21 billion dollars at current prices.
Trump believes that this reserve could be a starting point when announcing his BTC reserve plan in a speech in July, but it remains unclear what the legal process would be to transfer them out of the Department of Justice.
Trump did not say whether the government would increase the reserve by purchasing more BTC on the open market. To do so, the government would have to borrow money, but some proponents of Bitcoin reserves argue that the U.S. could sell some of its gold reserves and use the proceeds to buy BTC.
DYOR! #Write2Win #Write&Earn $BTC
