US Federal Reserve officials banned from owning and trading cryptocurrency

A ban also applies to stocks and bonds

19.02.2022 - 09:45

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1 min

A ban also applies to stocks and bonds.

What’s new? The US Federal Reserve System (Fed) has approved a law that bars senior officials from trading cryptocurrencies as well as stocks and bonds. The law will take effect by May 1, 2022, by which time all officials must dispose of their assets within a year, according to a press release from the Fed.

US Fed’s press release

Who will be affected by the ban? The new restrictions will affect Fed officials, regional bank presidents such as the Boston or St. Louis Fed, staff officers, and bond desk managers. Also, the ban will apply to officials’ immediate family members, spouses, and children. Other Fed employees are expected to be affected by the law in the future.

Why was this law passed? The new rule was created to increase public confidence in the Federal Reserve System. According to the press release, the ban on trading is intended 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.”

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