According to regulations of the United States Office of Government Ethics, cryptocurrencies and stablecoins are not considered “publicly traded securities”. It also banned private owners of digital assets from participating Federal policies that could impact the valuation of these tokens.
Recommendation of the OGE
The OGE’s latest legal advisory explained that government employees with securities can apply for the exemption “de minimis” and resume their duties if they don’t exceed a threshold. The agency doesn’t classify cryptocurrency as “publicly traded securities” so workers won’t be allowed to participate in Federal regulations or policies if they have HODLers.
If an employee has any cryptocurrency or stablecoin, they may be prohibited from participating in a specific matter. This is because the employee knows that the matter could have a predictable and direct effect on their cryptocurrency or stablecoins.
It is important to note that the legislation covers all government officials, not just those who work at the White House, Department of the Treasury and Federal Reserve.
Employees may also be allowed to participate in certain governmental affairs if they have a “disqualifying economic interest” in holdings in a mutual cryptocurrency fund that is under supervision. Workers may also be involved in the operation of funds if they are their owners.
OGE explained that mutual funds that are focused on stablecoins and cryptocurrencies should be considered “sector funds”.
The agency stated that mutual funds that have a stated goal of investing in large companies that will benefit from or use Blockchain technology are considered diversified funds.
According to the OGE, it is sometimes difficult to identify specific mutual funds. The agency pledged to closely observe these entities and to “look beyond fund names to the prospectus” in order to analyze their functions.
Cryptocurrency-Owners in Government
Many US officials and politicians have discovered that the digital asset universe is an interesting niche. Senator Cynthia Lummis is one such example. She is a long-time bitcoin owner. In 2013, the asset was valued at around $300. She joined the ecosystem, and last summer she added up to $100,000 to her bitcoin stash.
Others in the club include Senator Pat Toomey from Pennsylvania, Senator Ted Cruz, Texas, Congressman Mark Green and Congressman Michael McCaul.
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