Crypto Owners Can Not Work on US Crypto Policies
- Crypto regulation is presently a trending topic amongst global financial regulators.
- The US might become the first Western country to officially make stablecoins a part of its financial system alongside other digital assets.
The United States is actively preparing to roll out more policies for the cryptocurrency industry but plans to exclude crypto owners from the process. Private cryptocurrency owners in the US government are no longer permitted to participate in legislation or other initiatives that might have an impact on the value of digital assets.
The rule is reportedly due to the possibility that their investments could influence their choices. Government representatives who own cryptocurrency have been criticized for prejudice when drafting legislation that affects cryptocurrency. Most of these officials try to safeguard both themselves and other cryptocurrency owners.
The U.S. Office of Government Ethics (O.G.E. ), recently released a notification report which also included the de minimis exemption for bitcoin owners. Holders of securities with a value below a predetermined level are permitted to work on related policy issues owing to the exemption. This exemption might apply to conventional currencies, however, stablecoins and cryptocurrencies may not certainly fall under that category.
According to the warning note, even if specific cryptocurrencies or stablecoins are considered securities under federal or state securities regulations, they still do not meet exemption demands. The report added that since both assets are not publicly traded securities, the de minimis exemption does not apply to them.
The note added that,
As a result, an employee who holds any amount of a cryptocurrency or stablecoin may not participate in a particular matter if the employee knows that particular matter could have a direct and predictable effect on the value of their cryptocurrency or stablecoins.
All White House employees who possess cryptocurrency must follow this new directive. Furthermore, all government employees, including those working for the Treasury Department and the Federal Reserve, are likewise covered by the instruction. White House workers who have been open about their bitcoin holdings, like Tim Wu, a technological consultant to the current US government will be significantly impacted by the ban.
The warning note also gave an example of a situation where an employee is required to work on stablecoin regulation but only owns a small amount of that stablecoin ($100)—in this case. Such an employee is prohibited from doing so unless they relinquish their holdings in that stablecoin.
The US Continues to Integrate the Crypto Industry Despite Harsh Stance
The note, however, listed a select few cryptocurrency owners that stand out as exceptions. Employees of the federal government who have $50,000 invested in a mutual fund with exposure to the cryptocurrency industry may continue to work on crypto-related regulations. This is because their assets are regarded as diversified funds. As such, these cryptocurrency owners are eligible for exemption.
US president, Joe Biden appears keen on penetrating the crypto industry. His administration is embracing a holistic approach toward regulating the digital world and might become the only Western country to completely regulate and welcome digital assets and stablecoins as part of its financial system.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
