Fed Chair Jerome Powell Says, 'We're Not Allowed to Own Bitcoin' Amid Trump’s Push for Bitcoin Strategic Reserve

 In a recent statement, Federal Reserve Chairman Jerome Powell addressed the growing interest in cryptocurrency, particularly Bitcoin, amid former President Donald Trump's proposal to establish a Bitcoin Strategic Reserve. During a congressional testimony, Powell reiterated the Fed's position, saying, "We're not allowed to own Bitcoin."

Powell's comments come as Trump has advocated for the creation of a Bitcoin reserve to strengthen the U.S. financial system and ensure the country's economic stability in the digital age. Trump’s proposal, which aims to integrate Bitcoin into the country's strategic assets, has sparked debate among financial experts, lawmakers, and the public.

The idea of a Bitcoin Strategic Reserve is part of Trump’s broader vision to incorporate more digital assets into the economy, particularly as central banks around the world, including the U.S., explore Central Bank Digital Currencies (CBDCs). However, Powell's statement underscores the clear boundary between the Fed's responsibilities and cryptocurrency ownership.

"As the Federal Reserve, our mandate is focused on monetary policy, and owning Bitcoin does not align with that mandate," Powell explained. The Fed has expressed concern over the potential risks of unregulated digital currencies, particularly in terms of their volatility and lack of investor protection.

Trump’s push for a Bitcoin Strategic Reserve highlights the ongoing debate about the role of cryptocurrencies in national economies and their potential to reshape financial markets. While Powell and other regulators maintain a cautious stance, Trump views Bitcoin as an important hedge against inflation and a tool for enhancing U.S. economic power.

The conversation around cryptocurrencies continues to evolve, with policymakers, regulators, and financial leaders weighing the risks and benefits of integrating digital assets into the broader financial system. As these discussions unfold, Powell's comments serve as a reminder of the regulatory challenges and institutional limitations surrounding cryptocurrency adoption in the U.S.