US government officials that privately own cryptocurrencies are now banned from acting on regulations and policies that could affect the value of digital assets.
A new advisory notice issued by the US Office of Government Ethics (OGE) on Tuesday said that de minimis The exemption – which allows owners of securities to hold an amount below a certain threshold in order to act on a policy relating to that security – does not apply universally when it comes to cryptocurrencies and stablecoins.
“As a result, an employee holding any amount of cryptocurrency or stablecoin may not participate in a particular case if the employee knows that the particular case may have a direct and anticipated effect on the value of their cryptocurrency or stablecoin. Is.”
The notice provides an example scenario whereby an employee who owns just $100 of a certain stablecoin is asked to work on stablecoin regulation – the employee in question cannot participate in regulation-related work. “Unless they divide their interests [that] stable currency.
The notice specifies that this decision still applies regardless of when the cryptocurrency or stablecoin in question was ever “formed”. [a security] For the purposes of federal or state securities laws.”
The new rule applies universally to all federal government employees, including the White House, Federal Reserve and Treasury Department.
The word “de minimis” comes from a long Latin phrase, meaning: “The law itself is not concerned with small things.”
related: Self-regulatory organizations on the rise alongside new US crypto regulation
The only exemption from OGE’s crackdown on crypto ownership is that policymakers are allowed to hold up to $50,000 in mutual funds that invest widely in companies that benefit from crypto and blockchain technology. The reason for this exemption is that they are considered “diversified funds.”
The United States continues to move toward integrating the crypto industry, despite strict regulations relating to employee investment in the crypto space, with US President Joe Biden announcing a “whole government” approach to regulating the digital asset sector.
Recent legislative proposals could make the US the only Western country to fully regulate and accept stablecoins and other digital assets as official parts of the financial system, according to Raymond Shu, co-founder and CEO of Cabital.