The US Federal Reserve has decided to ban high-ranking US officials from trading cryptocurrency. Earlier, Fed officials were restricted from trading stocks, bonds, and derivatives. Now the regulation has been extended. Thus, cryptocurrencies, commodities, foreign currencies, and industry index funds have also entered the list of banned assets.
According to the regulator, the new rules "aim to support public confidence in the impartiality and integrity of the Committee’s work by guarding against even the appearance of any conflict of interest." The initiative was crafted in response to the scandal caused by the questionable trades of senior Fed officials shortly before the central bank adopted sweeping measures aimed at supporting the economy during the coronavirus pandemic. Following the controversy, Boston Fed President Eric Rosengren and Dallas Fed President Robert Kaplan left their posts.
The restrictions target FOMC members, regional bank presidents, and other officials, including HR managers, bond desk managers, as well as employees who regularly attend board meetings. The rules also apply to their family members. "The Federal Reserve expects that additional staff will become subject to all or parts of these rules after the completion of further review and analysis," a press release stated.
