Powell Makes it Clear: The Federal Reserve Has No Intention of Holding Bitcoin, Nor Has It Sought Legal Changes

Powell Makes it Clear: The Federal Reserve Has No Intention of Holding Bitcoin, Nor Has It Sought Legal ChangesFederal Reserve Chairman Jerome Powell recently provided a definitive answer regarding whether the Fed would hold Bitcoin. In an interview on December 19th, when asked about the possibility of including Bitcoin in its reserve assets, Powell directly stated that the Federal Reserve is currently not permitted to own Bitcoin, and the institution has never sought to amend any relevant laws or regulations to allow for such holdings

Powell Makes it Clear: The Federal Reserve Has No Intention of Holding Bitcoin, Nor Has It Sought Legal Changes

Federal Reserve Chairman Jerome Powell recently provided a definitive answer regarding whether the Fed would hold Bitcoin. In an interview on December 19th, when asked about the possibility of including Bitcoin in its reserve assets, Powell directly stated that the Federal Reserve is currently not permitted to own Bitcoin, and the institution has never sought to amend any relevant laws or regulations to allow for such holdings.

This statement directly refutes market speculation that the Fed might gradually adopt Bitcoin as a reserve asset. Previously, some market voices suggested that, considering the rise of Bitcoin as a digital asset and the increasing global central bank exploration of digital currencies, the Fed might in the future consider incorporating Bitcoin into its portfolio to address potential financial risks and explore new monetary policy tools.

However, Powell's clear and concise response eliminated this possibility. His statement underscores the Federal Reserve's current legal framework and its stance on cryptocurrencies. This indicates that, at least in the foreseeable future, Bitcoin will not become a reserve asset for the Fed. This position highlights the regulatory authorities' cautious attitude towards the cryptocurrency market and its prioritization of maintaining financial system stability.

Powell's statement is undoubtedly a significant signal for the Bitcoin market and investors. It clearly defines the boundaries between the Federal Reserve and cryptocurrencies, providing the market with clearer expectations. Although the market volatility of Bitcoin and other cryptocurrencies remains significant, the Fed's clear statement has, to some extent, reduced market uncertainty and provided investors with a more stable policy environment for reference. It also demonstrates that the Federal Reserve is currently focusing on its traditional monetary policy tools and regulatory framework.