The Federal Reserve’s ban on securities trading was formally adopted and extended to cryptocurrencies

2022-08-02 0 By

The move follows controversial Revelations last year that senior central bank officials often actively trade markets ahead of key policy decisions.Under sweeping new rules for investment and trading activities, senior Fed officials will be barred from buying individual stocks, bonds, agency securities, foreign currencies, commodities, industry funds and cryptocurrencies.The rules were originally announced in October, but did not include cryptocurrencies at the time.However, Friday’s formal order did include cryptocurrencies.Currently, the rules apply only to senior Fed officials, but the us central bank expects them to eventually apply to lower-ranking staff.Last year,Several senior Fed officials have disclosed active trading in various securities — particularly before emergency measures were taken in the early days of the COVID-19 pandemic in March 2020 — claiming the scalps of Eric Rosengren of the Boston Fed and Robert Kaplan of the Dallas Fed.Other caveats in Friday’s order include a 45-day irrevocable notice to buy and sell securities and a requirement to hold investments for at least a year.Trading would also be banned during periods of heightened market stress, which have yet to be defined.The new policy will take effect on May 1, and current officials will have one year to get rid of all unpermitted holdings.