Federal Reserve's Stance on Bitcoin

In a recent address to Congress, Jerome Powell, the Chair of the United States Federal Reserve, made it clear that the institution does not have the legal authority to purchase Bitcoin. "We do not seek this authority," Powell emphasized, highlighting the Fed's current position on cryptocurrency investments.

Banking Services and Cryptocurrency

Powell also touched upon the broader relationship between traditional banks and the cryptocurrency industry. He stated, "Banks are free to provide banking services to the crypto industry and are also free to conduct crypto activities as long as they do so in a way that is protective of safety and soundness." This remark underscores the Fed's cautious yet open approach towards the integration of cryptocurrencies within the banking sector.