{"id":11216,"date":"2022-02-18T18:41:08","date_gmt":"2022-02-18T18:41:08","guid":{"rendered":"http:\/\/ci029a2a390003270f"},"modified":"2022-02-18T18:41:08","modified_gmt":"2022-02-18T18:41:08","slug":"fed-bans-its-officials-from-trading-bitcoin-stocks-bonds","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/fed-bans-its-officials-from-trading-bitcoin-stocks-bonds","title":{"rendered":"Fed Bans Its Officials From Trading Bitcoin, Stocks, Bonds"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><ul>\n<li>Fed employees will no longer be able to invest in a cohort of assets, including bitcoin.<\/li>\n<li>The new rules come into effect on May 1 and prohibit Fed officials from buying stocks, bonds, cryptocurrencies, and other securities.<\/li>\n<li>The rules \u201caim to support public confidence in the impartiality and integrity of the Committee&#8217;s work,\u201d the Fed said in a statement.<\/li>\n<\/ul>\n<p>Federal Reserve (Fed) officials will be prohibited from investing in a slew of assets, including bitcoin, as per new rules shared by the Federal Open Market Committee (FOMC) in a <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20220218a.htm\" target=\"_blank\" rel=\"noopener\">Friday statement<\/a>.<\/p>\n<p>\u201cThe rules, which were first announced in October 2021, aim to support public confidence in the impartiality and integrity of the Committee&#8217;s work by guarding against even the appearance of any conflict of interest,\u201d the statement said.<\/p>\n<p>Effective May 1, senior Fed officials won\u2019t be able to invest in stocks, sector funds, bonds, agency securities, cryptocurrencies, commodities, foreign currencies, derivatives contracts, or securities, per the statement.<\/p>\n<p>The new rules represent a step up from old provisions that prohibited Fed officials from holding bank stocks and Treasury securities as well as engaging in financial transactions during a blackout period around FOMC meetings.<\/p>\n<p>The new rules will apply to board members, regional bank presidents and first vice presidents as well as a range of other officials including staff officers, bond desk managers and deputy managers, and directors who regularly attend FOMC meetings. The rules also extend to their spouses and minor children.<\/p>\n<p>\u201cThe Federal Reserve expects that additional staff will become subject to all or parts of these rules after the completion of further review and analysis,\u201d the statement said.<\/p>\n<p>The move comes on the heels of last year&#8217;s scandals that revealed several senior <a href=\"https:\/\/www.cnbc.com\/2021\/09\/17\/after-years-of-being-squeaky-clean-the-federal-reserve-is-surrounded-by-controversy.html\" target=\"_blank\" rel=\"noopener\">Fed officials had been trading stocks and stock funds<\/a> in tandem with the central bank\u2019s actions that boosted the economy at the beginning of the pandemic in 2020. The controversy led regional presidents Erick Rosengren and Robert Kaplan to <a href=\"https:\/\/www.cnbc.com\/2021\/09\/27\/dallas-fed-president-kaplan-to-retire-early-on-oct-8-citing-trading-disclosure-distraction.html\" target=\"_blank\" rel=\"noopener\">leave their positions<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new rules extended the ban first announced in October to include bitcoin and cryptocurrencies.<\/p>\n","protected":false},"author":2572,"featured_media":4037,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[1551,688,207,93,1409],"class_list":{"0":"post-11216","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-ban","9":"tag-bonds","10":"tag-federal-reserve","11":"tag-news","12":"tag-stocks"},"author_data":{"id":2572,"name":"Namcios","nicename":"namcios","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/pfp-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/bitcoin-and-the-blockchain-take-the-stage-for-international-summit-of-central-banks-at-the-federal-reserve.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/11216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2572"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=11216"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/11216\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/4037"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=11216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=11216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=11216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}