Bitcoin’s worth dipped Wednesday after Federal safety net Chairman Jerome Powell said the central financial institution is not looking to hold the digital money and signaled a more cautious way to rate cuts in 2025.  

“We’re not allowed to own bitcoin. The Federal safety net Act says what we can own, and we’re not looking for a law transformation,” Powell said at a Wednesday press conference. “That’s the benevolent of thing for Congress to consider, but we are not looking for a law transformation at the Fed.”  

Powell’s comments were in response to a question on whether he saw any worth in the U.S. building a safety net of bitcoin, an concept floated by President-elect Donald Trump as a way to remain ahead of the competition as other countries embrace crypto. Bitcoin prices fell more than 5% Wednesday afternoon following the press conference.

While experts have warned of risks associated with volatile cryptocurrencies, bitcoin’s worth has soared in recent months as President-elect Donald Trump appears poised to make a more welcoming regulatory surroundings.

Trump in July said he would make the United States the “crypto financing distribution of the earth and the bitcoin superpower of the globe.” In September, Trump helped roll out a recent cryptocurrency business with ties to his household, and earlier this month named former PayPal executive David Sacks as his “White House A.I. & Crypto Czar.” He also nominated cryptocurrency friend Paul Atkins as head of the stocks and bonds and trade fee. 

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As of Wednesday afternoon, Bitcoin’s worth was above $101,000, up more than 125% from the commence of the year. The cryptocurrency hit a record high above $108,000 earlier this week.