Fed Chair Jerome Powell: The Fed Is Not Allowed to Own Bitcoin
Key Points:
- Fed Chair Jerome Powell stated that the central bank could not and would not hold Bitcoin.
- Bitcoin, trading at $100,000, remains volatile despite doubling in value this year.
Fed Chair Jerome Powell said Wednesday that the U.S. central bank has no inclination or authority to join efforts to stockpile Bitcoin.
Read more: Fed Chair Jerome Powell Issues Warning About War Against Inflation
Fed Chair Jerome Powell Rules Out Bank’s Involvement in Bitcoin
Speaking after the Federal Open Market Committee’s final meeting of the year, Fed Chair Jerome Powell made clear that the central bank is legally barred from holding Bitcoin or any cryptocurrency.
“We’re not allowed to own Bitcoin,” Powell said during a news conference. He added that any changes in the Federal Reserve’s legal authority would be up to Congress, but the Fed is not seeking such changes.
The comments came as the Fed announced a 25-basis-point cut to interest rates, a move that dampened Bitcoin’s value. Following the news, Bitcoin extended its recent downward trend, trading at approximately $100,000.
Powell’s comments responded to discussions about the possibility of a U.S. government Strategic Bitcoin Reserve proposed by President-elect Donald Trump. Trump has floated the idea of creating a national Bitcoin stockpile, potentially using 200,000 seized tokens worth about $21 billion.
While the specifics of the plan remain unclear, Trump has made bold claims about positioning the U.S. as a global cryptocurrency leader, even naming key crypto advocates for his administration.
Bitcoin’s Wild Swings Casts Doubt on Reserve Currency Status
Historically, Fed Chair Jerome Powell has doubted Bitcoin, referring to the virtual currency as a speculative vehicle unfit to be used either as a currency or a reserve instrument because of its volatility. Under the Federal Reserve Act, the central bank can hold only secure assets such as U.S. government bonds.
Bitcoin has surged by over 100% this year, buoyed by optimism over Trump’s pro-crypto rhetoric. However, analysts caution the price volatility undermines its viability as a stable reserve currency.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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Fed Chair Jerome Powell: The Fed Is Not Allowed to Own Bitcoin
Key Points:
- Fed Chair Jerome Powell stated that the central bank could not and would not hold Bitcoin.
- Bitcoin, trading at $100,000, remains volatile despite doubling in value this year.
Fed Chair Jerome Powell said Wednesday that the U.S. central bank has no inclination or authority to join efforts to stockpile Bitcoin.
Read more: Fed Chair Jerome Powell Issues Warning About War Against Inflation
Fed Chair Jerome Powell Rules Out Bank’s Involvement in Bitcoin
Speaking after the Federal Open Market Committee’s final meeting of the year, Fed Chair Jerome Powell made clear that the central bank is legally barred from holding Bitcoin or any cryptocurrency.
“We’re not allowed to own Bitcoin,” Powell said during a news conference. He added that any changes in the Federal Reserve’s legal authority would be up to Congress, but the Fed is not seeking such changes.
The comments came as the Fed announced a 25-basis-point cut to interest rates, a move that dampened Bitcoin’s value. Following the news, Bitcoin extended its recent downward trend, trading at approximately $100,000.
Powell’s comments responded to discussions about the possibility of a U.S. government Strategic Bitcoin Reserve proposed by President-elect Donald Trump. Trump has floated the idea of creating a national Bitcoin stockpile, potentially using 200,000 seized tokens worth about $21 billion.
While the specifics of the plan remain unclear, Trump has made bold claims about positioning the U.S. as a global cryptocurrency leader, even naming key crypto advocates for his administration.
Bitcoin’s Wild Swings Casts Doubt on Reserve Currency Status
Historically, Fed Chair Jerome Powell has doubted Bitcoin, referring to the virtual currency as a speculative vehicle unfit to be used either as a currency or a reserve instrument because of its volatility. Under the Federal Reserve Act, the central bank can hold only secure assets such as U.S. government bonds.
Bitcoin has surged by over 100% this year, buoyed by optimism over Trump’s pro-crypto rhetoric. However, analysts caution the price volatility undermines its viability as a stable reserve currency.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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