His statement effectively rules out, for now, Fed involvement in any government initiative to hold the cryptocurrency.
Speaking at a post-policy meeting press conference, Powell addressed questions about the proposed strategic Bitcoin reserve, emphasizing that any such initiative would require Congressional action. The Fed’s role remains focused on banking sector supervision rather than direct cryptocurrency regulation.
“We’re not allowed to own Bitcoin,” he said.
“That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”
The comments come amid President-elect Trump’s suggestions of creating a national Bitcoin stockpile, potentially starting with 200,000 tokens seized from criminal activities — worth approximately US$21 billion at current prices. Senator Cynthia Lummis has proposed legislation for Treasury purchases of 200,000 bitcoins annually.
Such plans would likely require Congressional approval and new Treasury debt issuance. The Fed has maintained distance from cryptocurrency initiatives while stepping back from its own digital dollar development.
Powell’s stance signals continued regulatory separation between traditional banking and cryptocurrency sectors, even as the incoming administration promises a more crypto-friendly approach.
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