The bans prohibiting any cryptocurrency related trading will take effect on May 1. From that day, senior officials are not allowed to invest in Bitcoin.
This February 18th, the United States Federal Reserve (Fed) announced commercial and financial prohibitions for its senior officials, barring its agents from investing in Bitcoin and other properties.
The orders were unveiled this Friday, through an official statement on the SEC website. The government agency alleged that the “senior Federal Reserve officials are prohibited from purchasing individual stocks or sector funds; holding investments in individual bonds, agency securities, cryptocurrencies, commodities, or foreign currencies; entering into derivatives contracts; and engaging in short sales or purchasing securities on margin”.
The Fed has classified as “impermissible holdings” for its top officials all those mentioned above, that is, Bitcoin, other cryptocurrencies, bonds, securities and shares. According to the Fed statement, the new rules are the result of following the guidelines announced today by The Federal Open Market Committee (FOMC).
The bans will take effect on May 1, and the Fed gave its agents a one-year term to dispose of their holdings in bitcoin and the assets described above. However, the Fed’s intentions regarding the funds of its top officials could be far from reality, if they have good privacy practices with their satoshis.