The US government has banned employees working on regulations and policies affecting digital assets from owning cryptocurrencies.
The government’s Office of Official Ethics (OGE) has established new rules essentially citing conflicts of interest.
Regulation covers many aspects related to the crypto market, including stablecoins. The notice reads:
“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. “
The notice states 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.
The rule applies to all government agencies
However, government employees will be allowed to work on the respective policies if they disinvest their holdings. This rule would apply to all federal government agencies, including the United States Treasury, the Federal Reserve and the White House.
There is one notable exception to this rule: government employees can hold up to $50,000 in mutual funds in companies that are operating in, or close to, the crypto space.
The United States has accelerated regulation of the crypto market over the past 18 months. Many of these developments have happened over the past six months, as the government aims to protect investors and prevent criminal activity.
The stablecoin is a major target for regulation, with the recent crash in the minds of TeraUSD (UST) lawmakers. The Federal Reserve is considering a CBDC, which some say could coexist with stablecoins, although panelists at a recent conference said the scope for cross-border applications was limited.
The United States Securities and Exchange Commission (SEC) is currently conducting several investigations into cryptocurrencies.