Fed is not “seeking” a change in the law on owning Bitcoin

Bitcoin’s price fell on Wednesday after Federal Reserve Chairman Jerome Powell said the central bank did not intend to hold the digital currency and signaled a more cautious approach to interest rate cuts in 2025.

“We are not allowed to own Bitcoins. “The Federal Reserve Act says what we can own, and we are not seeking to change the law,” Powell said at a news conference Wednesday. “This is something Congress has to consider, but we are not seeking a legislative change at the Fed.”

Powell’s comments were in response to a question about whether he saw value in the U.S. building a Bitcoin reserve, an idea put forward by President-elect Donald Trump to stay ahead of the competition as other countries adopt cryptocurrencies. Bitcoin prices fell more than 5% on Wednesday afternoon following the press conference.

While experts warn of risks associated with volatile cryptocurrencies, Bitcoin’s value has surged in recent months as President-elect Donald Trump appears poised to create a friendlier regulatory environment.

Trump said in July that he would make the United States the “crypto capital of the planet and the Bitcoin superpower of the world.” In September, Trump helped launch a new cryptocurrency business with ties to his family and earlier this month appointed former PayPal executive David Sacks as his “White House AI and crypto czar.” He also named cryptocurrency ally Paul Atkins to head the Securities and Exchange Commission.

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As of Wednesday afternoon, Bitcoin price was above $101,000, up more than 125% since the start of the year. The cryptocurrency hit a record high of over $108,000 earlier this week.

Fed is not “seeking” a change in the law on owning Bitcoin

ByAmelia Journalton

By Amelia Journalton

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