Federal Reserve Banned its Officials from Owning CryptoMarch 7, 2022
Federal Reserve is under a lot of pressure from the public due to the stimulus check issuance and its money-printing policies. However, recently a new controversy has started to make rounds on social media about the Fed employees. Recently, the news was leaked in the market that some Federal Reserve officials own and trade cryptocurrencies.
The news generated a considerable amount of outrage from the general public. The representatives of the public felt that such a practice could create a bias for the state department. The news has been making circles among the members of the general public since last October. Therefore, a decree is issued to ban the employees from investing in digital assets.
As per the media reports, the Federal Reserve employees who are already holding cryptocurrencies, foreign currencies, or any other trade commodities must submit 45 days prior notice before deciding to sell. It is the responsibility of the 12 elected regional bank presidents operating under the jurisdiction of the Federal Reserve to make the filing public within 30 days.
A statement issued by the Federal Reserve spokesperson on the matter declared that the step was taken to re-establish the trust of the people in the government agency and prevent any possible conflict of interest. A big factor that put the new policies into motion was the resignation of the former Fed governors, Robert Kaplan and Eric Rosengren, following the controversy of personal assets and trades.
At the same time, the Federal Reserve experts are focusing their resources on determining the full impact of the Digital Dollar or CBDC. Lael Brainard recently urged the employees to pay more attention to the development of the CBDC project that can make a big difference in the economic structure in the future. He said that the CBDC would take little time to get immersed into the traditional financial infrastructure.
With the introduction of the new digital trading restrictions for the fed employees, a period of 12 months is granted to let them sort out their current holdings under the new guidelines from the regulatory agencies. Meanwhile, Jeremy Powell has increased the circle of scrutiny to the relatives, partners, and children of the Fed employees to ensure compliance with the new reporting laws.