U.S government officials are prohibited from participating in Federal cryptocurrency policies if they hold cryptocurrencies or stablecoins, OGE stated.
The U.S. Office of Government Ethics (OGE) has pointed out that cryptocurrencies and stablecoins do not qualify as “publicly traded securities” under the agency’s regulations. As such, it has barred individuals who privately own digital assets from participating in Federal policies that could affect the valuation of such tokens.
In its latest legal advice, OGE explains that government employees who own securities can apply for a “minimum level” exemption and resume their duties if they don’t pass a certain threshold. . However, because the agency does not classify cryptocurrencies as a “publicly traded security,” workers will not be allowed to participate in Federal regulations and policies if they are HODLers:
“Therefore, an employee holding any number of cryptocurrencies or stablecoins may not be involved in a particular matter if the employee is aware that that particular issue may have a direct and predictable to the value of their cryptocurrencies or stablecoins.”
It’s worth noting that the law applies to all government officials, including those who work at the White House, the Treasury Department, and the Federal Reserve.
Employees, on the other hand, may be involved in specific government affairs for which they have an “unqualified financial interest” from holding in a cryptocurrency mutual fund operating under the necessary supervision. set. In addition, employees can participate if they are the actual owners of the fund.
OGE explained that mutual funds that focus on crypto and stablecoins should fit the bill for “industry funds.”
“On the other hand, mutual funds with the stated purpose of investing widely in companies that can benefit from or use blockchain technology, are considered diversification funds,” the agency stated.
OGE says that sometimes determining the nature of specific mutual funds is not an easy task. In such cases, the agency pledged to scrutinize the entities and “look beyond the fund name to the prospectus” to analyze their function.
Government Officials Own Cryptocurrency
The digital asset universe has emerged as an attractive niche for many US politicians and officials. Take for example Senator Cynthia Lummis, a longtime bitcoin holder. She joined the ecosystem in 2013 when the price of the property was around $300, while last summer she amassed her fortune up to $100,000.
Other politicians in that club were Senator Pat Toomey of Pennsylvania, Senator Ted Cruz of Texas, Representative Mark Green, and Representative Michael McCaul.