Jerome Powell, chair of the US Federal Reserve, recently dismissed speculations that the Fed may add Bitcoin to its reserves. At the end of the its two-day meeting, Powell stated that the Fed isn’t allowed to own Bitcoin and doesn’t desire to get involved in any government initiative to create a stockpile of digital assets. 

The Bitcoin announcement comes after the Fed announced rate cuts while signaling uncertain monetary policies in the next few months. Powell’s announcement was surprising when President Donald Trump announced key appointments of crypto-friendly personalities. The market immediately reacted to Powell’s statement, sending Bitcoin’s price down by 5.7%. Other top altcoins like XRP also shed value.

Powell Thumbs Down Plans To Add BTC To Reserves

The debates on whether it’s time to create a stockpile of Bitcoin gained traction after Donald Trump secured a win and another presidency. Trump used Bitcoin and crypto as part of his campaign to attract support from crypto personalities and commentators. And by appointing key crypto-friendly personalities to top government positions and promising to revamp the SEC leadership, many expect to predict a Bitcoin stockpile soon.

Powell says Fed cannot hold Bitcoin, not seeking to change that https://t.co/72RQGK1Q6K

— ST Business Desk (@stbusinessdesk) December 18, 2024

However, Powell has categorically stated that the US banking system cannot hold Bitcoin. He argued that according to the Federal Reserve Act, there are rules on what banks can own, and Bitcoin is not included in the list.

He announced that they’re not looking to change the law soon, and it’s up to Congress to decide. 

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Author: Christian Encila