Officials approved the new restrictive rules Friday as a way to provide public confidence and ensure that officials meet ethical guidelines.
The U.S. Federal Reserve (Fed) is adopting new restrictions on the investments its officials can make.
According to media reports CNBC y Fortune the central bank of the North American nation has announced new rules that will prohibit its employees from trading a range of assets, including bonds, stocks and cryptocurrencies.
The Federal Open Market an area or arena, online or offline, in which commercial dealings are conducted. Committee (FOMC) approved the new rules this week. The rules, which had initially been announced in October last year, will take effect on May 1. The new restrictions come in response to the recent controversy surrounding the dubious investment practices of officials.
The rules “ are intended to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. public confidence in the impartiality and integrity of the Committee’s work by avoiding even the appearance of any conflict of interest “said the Fed in a statement on Friday quoted by Fortune . Federal Reserve Chairman Jerome Powell added on the matter:
These tough new rules raise the bar to assure the public we serve that all of our senior officials maintain a single-minded focus on the Federal Reserve’s public mission.
Fed Officials Won’t Be Able to Buy Bitcoin
According to the reports, the ban will extend to The FOMC is a forum for key policymakers, such as those on the FOMC, along with senior staff.
The measure will apply to regional bank presidents and a number of other officials, including staff officers, bond desk managers and Fed employees who regularly attend board meetings. They also extend to spouses and minor children.
The new rules replace existing regulations that, while somewhat restrictive, still allowed officials such as regional presidents to buy and sell shares. They have also expanded the initial restrictions laid out in the October paper to include cryptocurrencies such as Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. . Fortune cited the rules, which include a variety of assets:
Los funcionarios tienen prohibido poseer acciones individuales, fondos sectoriales, valores de agencias, bonos, materias primas, criptomonedas, divisas extranjeras y contratos de derivados, y participar en ventas al descubierto o comprar valores con margen.
According to the media report, the new rules also require officials to issue a 45-day notice for transactions. They must receive prior approval for any purchases and sales. It also expressly prohibits transactions “ during periods of heightened stress in financial markets “.
Officials added in statements to reporters that any violations will be reviewed on a case-by-case basis. However, they did not provide details on possible sanctions that could be applied to employees who do not violate the measures.
Medidas buscan garantizar prácticas éticas
Officials who still hold positions in the market will have 12 months to get rid of prohibited positions. For their part, the os nuevos funcionarios de la FED tendrán seis meses para hacerlo.
The approval of the stricter measures comes after it was revealed in 2020 that three senior Fed officials had engaged in unusual trading activity that raised ethical compliance concerns cuando el banco central intervino con políticas económicas para hacer frente a la situación de pandemia de COVID-19.
The medium Fortune recalls that disclosures showed that the vice president of the bank,Richard Clarida, vendió al menos USD $1 millón de acciones en febrero de 2020, antes de comprar una cantidad similar del mismo fondos unos días después, en vísperas de un importante anuncio de la FED sobre las medidas para amortiguar la crisis económica. Clarida resigned in January of this year.
The presidents of the Boston and Dallas Fed, Eric Rosengren and Robert Kaplan, respectively, resigned last year after similar scandals. Rosengren’s 2020 financial disclosures showed multiple transactions in real estate investment trusts, even as the Federal Reserve intervened in that sector of the economy through massive purchases of mortgage-backed securities. Kaplan, a former senior executive at Goldman Sachs , reveló múltiples transacciones de más de USD $1 millón ese año.
As noted by CNBC In addition, the U.S. Congress has been debating a measure that would also restrict its members from owning individual stocks, although it has not yet been adopted.
- U.S. Senator Cynthia Lummis says “it’s a good idea” for Federal Reserve to buy Bitcoin (with video)
- FBI creates new unit specifically dedicated to tackling cryptocurrency-related crime
- U.S. Congressman proposes bill banning federal agencies from restricting crypto transactions
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash