New rules will ban senior officials at Fed Res to purchase crypto assets
New rules are aimed to bring restrictions on all the senior officials to trade or hold crypto assets.
On 18 February, The Federal Open Market Committee (FOMC) announced that all the senior officials at FOMC will not be allowed to buy, sell, trade, or hold crypto assets. And this rule will come into effect on 1 May of this year.
Under this rule, all the senior officials, which are holding crypto assets in any medium, will get a total of a 1-year time frame to sell their crypto assets. One year of time frame will start from 1 May of this year.
However these rules are for old workers at FOMC but those who are new in FOMC will get only a total of 6 months to dispose of their crypto holdings.
It is worth noting that it will include “FOMC staff officers, the System Open Market Account manager and deputy manager, Board division directors who regularly attend Committee meetings, individuals designated by the Fed chair, and their spouses and children under 18.”
Here crypto is not only under a prohibition to trade but also includes purchasing individual stocks, holding investments in individual bonds, agency securities, commodities, foreign fiat currencies also.
Since 1 July of this year, trade with such assets will be allowed under 45 days’ notice. Reserve Bank presidents will be allowed to give details of their holdings within 30 days. Any of the people will not be allowed to sell their assets under heightened financial market stress, to save the market from any big crash.
“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,” the statement read
According to few market experts, such things can be seen negatively or positively both because on one side people will feel a lack of confidence if such high-level govt officials will not hold crypto assets, while on the other side people may take it positively that no one is trying to manipulate the crypto market.
Read also: Tesla charging stations will accept Dogecoin, says Elon Musk
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