During a press conference on December 19, 2024, Federal Reserve Chair Jerome Powell stated that it cannot hold Bitcoin as a reserve asset and does not anticipate a policy shift. He emphasized that decisions about Bitcoin's inclusion in U.S. reserves fall under Congress's jurisdiction.
Powell’s Comments on Bitcoin Reserves
Powell reiterated that the Federal Reserve cannot hold Bitcoin or any cryptocurrency as part of its reserves. Key points from his statement include: the Fed cannot hold Bitcoin under its current mandate, which requires Congress's approval. Powell does not foresee changes to the Fed’s policy in the near future.
Congress’s Role in Bitcoin Reserve Decisions
Powell’s remarks highlight the critical role Congress plays in shaping monetary policy and incorporating new asset classes into national reserves. Steps for congressional action include legislative debate, regulatory framework development, and public sentiment consideration.
Bitcoin’s Current Role in the U.S. Economy
While Bitcoin is not part of the Federal Reserve’s reserves, it has grown in significance within the U.S. financial ecosystem. Major companies, such as Tesla and MicroStrategy, hold Bitcoin as part of their treasury strategies.
Jerome Powell’s statement that Bitcoin reserve decisions lie with Congress underscores the complexities of integrating cryptocurrency into national financial systems. Although the Fed's current policy excludes Bitcoin as a reserve asset, ongoing discussions among lawmakers and market stakeholders may influence its future role.
