Powell highlights legal constraints preventing the Fed from holding Bitcoin as Congress debates Senator Cynthia Lummis’s proposal.
On December 18, Federal Reserve Chair Jerome Powell stated that the U.S. central bank “is not allowed to own Bitcoin” and “is not seeking legislative changes” to enable it.
Powell explained that, under the Federal Reserve Act, there are strict rules governing what the bank can hold, and Bitcoin is not among the permitted assets.
However, the idea of the U.S. government establishing a Bitcoin reserve falls under Congress’s authority, not the Federal Reserve’s. Powell emphasized that any decision on this matter should be made by lawmakers.
Meanwhile, Republican Senator Cynthia Lummis of Wyoming has introduced a draft bill in Congress proposing that the U.S. Treasury acquire one million bitcoins over five years. Similarly, in Pennsylvania, Republican legislators have introduced a bill to allow the state treasurer to invest in Bitcoin.
