The United States Office of Government Ethics (OGE) underlined that cryptocurrencies and stablecoins do not qualify as “publicly traded securities” according to the agency’s regulations. Therefore, it has prohibited individuals holding private digital assets from participating in federal policies that could affect the valuation of such tokens.
In its latest legal advice, the OGE explained that government employees who hold securities can apply for a “de minimis” exemption and resume their duties if they do not exceed a certain threshold. . However, since the agency does not classify cryptocurrencies as “publicly traded securities,” workers will not be allowed to participate in federal regulations and policies if they are HODLers:
“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.”
It’s worth noting that the law applies to all government officials, including those working in the White House, the Treasury Department, and the Federal Reserve.
On the other hand, employees can participate in specific government affairs in which they have an “ineligible financial interest” from holdings in a mutual crypto fund operating under the required supervision. In addition, workers can join if they are the actual owners of the funds.
OGE explained that mutual funds focused on cryptocurrencies and stablecoins should fit the bill for a “sector fund.”
“The purpose of a mutual fund broadly investing in companies that will benefit from or use blockchain technology is considered a diversified fund,” the agency said.
OGE said that sometimes it is not an easy task to identify the nature of a particular mutual fund. In such cases, the agency vowed to “look at the prospectus beyond the name of the fund” to thoroughly inspect the entities and analyze their actions.
Government officials who own crypto
The digital asset universe has emerged as an interesting place for many US politicians and officials. One such example is Senator Cynthia Loomis, a longtime bitcoin holder. It entered the ecosystem in 2013, when the asset was valued at around $300, while last summer, it topped its reserves with up to $100,000 in assets.
Other politicians in that club are Senator Pat Tommy of Pennsylvania, Senator Ted Cruz of Texas, Congressman Mark Green and Congressman Michael McCall.
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