Federal Reserve Chair Jerome Powell clarified Wednesday that the central bank has no intention of supporting efforts to create a U.S. Strategic Bitcoin Reserve. Speaking after the Fed’s latest policy meeting, Powell stated, “We’re not allowed to own bitcoin,” adding that such decisions are for Congress, not the Fed.
The concept of a bitcoin reserve has gained traction following President-elect Donald Trump’s suggestion to utilize seized bitcoin as an initial stockpile. However, Powell’s remarks dampened enthusiasm, triggering a drop in bitcoin’s value, which had surged past $100,000 on optimism over Trump’s crypto-friendly policies.
Republican Senator Cynthia Lummis has proposed legislation for the U.S. Treasury to acquire bitcoin annually, funded by gold and Fed deposits, but analysts predict resistance from the Fed and Congress. Powell emphasized the central bank’s focus remains on regulating banks’ interactions with crypto rather than direct involvement in the volatile asset class.
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