Powell: Fed ‘not allowed to own Bitcoin’, not looking to change that

Federal Reserve Chairman Jerome Powell

Federal Reserve Chairman Jerome Powell said the law does not allow the US central bank to hold a reserve of Bitcoin, highlighting that monetary policymakers have no desire to participate in any government efforts to do so.

Following the Federal Reserve’s policy meeting on Wednesday, Powell explained in a press conference that considering the legal issues related to the central bank’s possession of the cryptocurrency falls within the jurisdiction of Congress.

Powell had previously stated in press statements on Dec. 4 that the Fed regulates and supervises the banking sector. It does not want the interaction between crypto businesses and banks to threaten the health of banks.

The US central bank is not directly involved in regulating the cryptocurrency market, Powell stressed.

US President-elect Donald Trump recently pledged to create a strategic reserve of Bitcoin after returning to the White House. He created a new position called “AI and Cryptocurrency Czar”, planning to assign it to former CEO of PayPal, David Sachs.