Fed Chair Powell declared at a regular press conference following the announcement of monetary policy decisions that the US central bank cannot acquire bitcoin.
The bank regulator emphasised that current laws do not authorise a Fed BTC reserve. Powell also stated that America's central bank is uninterested in any legislation that would allow for a publicly recognised government-managed BTC stockpile.
Powell made the statements immediately after the Fed's last Federal Open Market Committee meeting of the year, when interest rates were slashed by 25 basis points. Bitcoin fell 2.1% in one hour after the rate cut announcement, and is currently trading around $101,400.
Powell's Bitcoin statements are not new.
This is not the first time Powell has made such claims. Fed Powell has previously reiterated the same declaration at multiple post-FOMC meetings.
However, Powell's statement is one of the first since Donald Trump was elected as the United States' 47th president. Powell's views were likely drawn to notice this time because of Trump's proposal for a national strategic Bitcoin reserve.
While legislators like as Senator Cynthia Lumiss and industry leaders in general praised the move, a few crypto professionals, including Castle Island Venture founding partner Nic Carter, were sceptical. Carter believes that establishing a US-managed BTC reserve could raise questions about the dollar's strength and function as a global reserve currency.
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