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Nidhi Kolhapur
Nidhi Kolhapur
Author
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Feb 01, 2025 08:06 UTC
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Will the U.S. Ever Create a Bitcoin Reserve? Fed Official Weighs In
A Fed official (Goolsbee) reiterated the Fed's legal limitations on holding assets like Bitcoin, echoing Powell's previous statements.
Despite some positive comments from Powell about Bitcoin, a US Bitcoin reserve seems unlikely in the near term, though some states are exploring local reserves.
While proponents like Senator Lummis push for a US Bitcoin reserve for competitive advantage, others, like ECB President Lagarde, oppose it.
The idea of the U.S. establishing a Bitcoin reserve has sparked a lot of conversations lately, and now, a Federal Reserve official has weighed in with his perspective.
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, recently shared that while the discussions are interesting, there are serious legal limits on what the Fed can hold on its balance sheet. But is a Bitcoin reserve still possible, or is it just another pipe dream?
Goolsbee’s comments come after Federal Reserve Chair Jerome Powell reaffirmed that the Fed cannot hold Bitcoin due to the Federal Reserve Act. Powell has also stated that the Fed has no plans to seek a change in the law. In 2021, he added that Bitcoin’s volatility makes it an unreliable store of value.
Despite the Fed’s stance on holding Bitcoin, Powell has been more open to other aspects of cryptocurrency. In a recent press conference, he stated that banks can now offer cryptocurrency custody services, following the SEC’s decision to remove the controversial SAB-121 guidance.
The announcement was well received by the crypto community, causing Bitcoin’s price to rise.
Bitcoin as Digital Gold – But No Reserve Yet
Powell’s recent description of Bitcoin as a “digital version of gold” aligns with the views of many Bitcoin supporters. However, the idea of a U.S. Bitcoin reserve now seems less likely, with the chances of it being established by April dropping to just 16%. Still, most expect the reserve to be created later this year.
While a national Bitcoin reserve may be on hold, several states, including Texas, Florida, and Ohio, are looking into creating their own Bitcoin reserves. However, it remains uncertain how many of these efforts will succeed. Cynthia Lummis 
Cynthia Lummis
Cynthia Lummis is a U.S. Senator and an advocate of cryptocurrency regulation in the United States. A passionate advocate for Bitcoin, she backs initiatives that foster blockchain advancement while providing regulatory certainty.
Quick Facts
Full name Cynthia Marie Lummis Wiederspahn Birth 10-09-1954, Cheyenne, Wyoming, United States Nationality American Education Juris Doctor from the University of Wyoming Husband/Partner Alvin Wiederspahn Net worth $13 million estimated
Cynthia Lummis introduced the BITCOIN Act of 2025, an innovative legislation that outlines a national cryptocurrency framework aimed at creating a Strategic Bitcoin Reserve (SBR) to improve America’s financial safety, international competitiveness, and economic independence.
Cynthia Lummis - Timeline and Events
2009 – Elected as U.S. Representative for Wyoming.
2013 – Advocated for digital financial innovation in Congress.
2020 – Elected as U.S. Senator, openly supporting Bitcoin.
2021 – Formed the Financial Innovation Caucus for crypto legislation.
2022 – Co-introduced the Lummis-Gillibrand Responsible Financial Innovation Act.
2023 – Pushed for clearer crypto regulations in the U.S. Senate.
2024 – Continued advocating for Bitcoin-friendly policies in Congress.
Through her efforts in Congress, she aims to establish the U.S. as a worldwide leader in blockchain technology, promoting financial innovation while safeguarding investor protection.
Useful Links To Connect With Cynthia Lummis
Platform Link X (formerly Twitter) twitter.com/CynthiaMLummis LinkedIn profile linkedin.com/in/cynthia-lummis Bitcoin policy blog bitcoinpolicyinstitute.org Official website lummis.senate.gov
Useful Links To Connect With Cynthia Lummis
Platform Link X (formerly Twitter) twitter.com/CynthiaMLummis LinkedIn profile linkedin.com/in/cynthia-lummis Bitcoin policy blog bitcoinpolicyinstitute.org Official website lummis.senate.gov
Investor 
a Wyoming senator and long-time advocate for Bitcoin, recently said that establishing a reserve will be a top priority as she heads a new Senate subcommittee on digital assets.
But the Debate Continues…
Outside the U.S., there is also resistance to the idea of Bitcoin in national reserves.
European Central Bank President Christine Lagarde recently stated that she is confident Bitcoin will not be included in the European Union’s reserves. She emphasized that central bank reserves must be secure, liquid, and free from criminal activities like money laundering.
Her comments came after the head of the Czech National Bank suggested that Bitcoin could make up 5% of the country’s reserves, reigniting debate over Bitcoin’s role in national finance.
Time To Act Fast, Says Senator Lummis
In response to these ongoing developments, Senator Lummis stressed the importance of the U.S. acting quickly to establish a Bitcoin reserve and maintain a competitive edge. “If you’re not first, you’re last,” Lummis said, emphasizing the need for the U.S. to secure its place in the digital asset world.
While the Trump administration is exploring the idea of a Bitcoin reserve, no official announcements have been made.
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