Powell: Fed Won’t Hold Bitcoin ($BTC ) or Seek Policy Change
Federal Reserve Chair Jerome Powell stated Wednesday that the Fed has no authority to hold bitcoin and no plans to seek a law change to allow it. His comments came after speculation about a U.S. Strategic Bitcoin Reserve, an idea floated by President-elect Donald Trump.
"We're not allowed to own bitcoin," Powell said, adding that such decisions are for Congress to consider. His remarks caused a dip in bitcoin’s value, which had surged past $100,000 on hope of pro-crypto policies under the new administration.
Proposals for a bitcoin reserve, including one by Senator Cynthia Lummis, face challenges, including Congressional approval and opposition from the Fed, which remains skeptical of cryptocurrency due to its volatility and limited utility.
European central banks share this skepticism, dismissing bitcoin as too volatile for reserve use. As crypto debates continue, the Fed remains focused on regulating banking interactions with crypto rather than holding it directly.
