Bitcoin Continues to Plunge Following Fed’s Statement

Federal Reserve Chairman Jerome Powell said on Wednesday that the Fed is not allowed to own Bitcoin (BTC) under the Federal Reserve Act. Powell also stressed that the Fed has no intention of changing the law, despite President-elect Donald Trump’s pledge to create a national strategic Bitcoin reserve.

Following Powell’s remarks, Bitcoin prices fell below the $100,000 threshold. Bitcoin is currently trading at $96,600, continuing its decline after hitting a new record high above $108,000 just two days ago. The world’s largest cryptocurrency is now down 6.2% on the day, amid a broader crypto market rout.

Bitcoin Ownership Banned by Fed

Jerome Powell has dismissed speculation that the Fed might be involved in creating a national Bitcoin reserve, stressing that current regulations do not allow the US central bank to own the world’s largest cryptocurrency.

Read more: HODLers Favor Memecoins Over Bitcoin, Binance Survey Finds

Powell also said the Fed has no plans to seek legislative changes to allow Bitcoin ownership. He stressed that any changes to the policy would have to be considered by Congress.

“The Federal Reserve Act is clear about what we can own, and we’re not looking to change the law. That’s something that Congress has the authority to do, but the Fed is not proposing to change the law,” Powell said.