I know I've been the bearer of bad news or always look at the negative side of goods news, but on the flip today, I am looking at the postive side of negative news. Lol try to keep up kids, the class is moving on to the next exibit.
As a fringe minory of politicans continue to champion bitcoin for political gain, pushing forward bills in their local states and vowing to take their paycheques in bitcion, we were always going to see a push back.
And a push back it shall be, with the Federal Reserve banning senior officials from investing in bitcoin. As part of these new regulations, if offcials do hold bitcoin they have 12 months from the effective date of the rules to dispose of all impermissible holdings.
So expect some dumping from some large holders in the coming months.
The FOMC is a committee within the U.S. Federal Reserve System with the responsibility of overseeing the nation’s open market operations. Under the new rules, senior Federal Reserve officials are prohibited from holding a range of investments.
- individual bonds,
- agency securities,
- cryptocurrencies,
- commodities,
- or foreign currencies.
In addition, they are also banned from “purchasing individual stocks or sector funds,” “entering into derivatives contracts,” and “engaging in short sales or purchasing securities on margin.”
Who do these rules apply to?
The new rules apply to
- Reserve Bank presidents,
- board members,
- first vice-president,
- research directors,
- FOMC staff officers,
- the manager and deputy manager of the System Open Market Account,
- board division directors who regularly attend Committee meetings,
- any other individual designated by the chairman,
- and the spouses and minor children of these individuals.
This is only the first round and the Federal Reserve is keen to expand the rules to apply to additional staff after further review and analysis.
The rules follow a controversy last year where several senior Fed officials were caught trading stocks and other investments just before the central bank adopted sweeping measures to help the economy through the Covid-19 crisis, benefiting from that insider information.
Following the controversy, Eric Rosengren, president of the Federal Reserve Bank of Boston, and Robert Kaplan, president of the Federal Reserve Bank of Dallas all had left their positions. Sure it shows the corruption and that is probably not something that is easily stamped out.
This doesn't mean that these employees won't find ways around it like using family members or other legal entities to obfuscate their ownership of assets, but it is an extra hurdle.
Giving plebs more time
Personally, I think this is great news and I hope it rolls out to central banks around the world along with politicians in different governments. The longer the powers that be remain out of the bitcoin space, the longer the average person can secure their position in the bitcoin network.
Once they realize that their bans would result in a faux par it would be too late to out accumulating individuals and resources would be better distributed among the general public and in countries that have been more proactive towards bitcoin.
The longer we keep the big money out of bitcoin the longer we as plebs can keep stacking at these discount prices.
Sources:
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