Fed Chair Powell States Bitcoin Reserve Policy Is Not on the Agenda
Federal Reserve Chair Jerome Powell recently addressed questions about the Fed’s stance on holding Bitcoin as a strategic reserve. His comments gained attention, especially in light of President-elect Donald Trump’s campaign promise to include Bitcoin in the country’s strategic reserves.
Key Points from Powell
Legal Restrictions: Powell clarified that the Federal Reserve is not legally allowed to hold Bitcoin under the Federal Reserve Act, emphasizing the strict limitations on asset ownership.
No Plans for Change: He stated that the Fed has no intention of seeking legislative amendments to enable Bitcoin ownership.
Congress’s Decision: Powell noted that any decisions on this matter rest with Congress, distancing the Fed from proactive involvement.
Implications and Outlook
While Powell reinforced the Fed’s neutral stance, Trump’s pledge to strategically hold Bitcoin may lead to policy conflicts between the White House and the central bank. If legislative changes are pursued, debates over Bitcoin’s role as a reserve asset could shape future financial policies in the U.S.
