Recently, the issue of crypto regulation has been beginning to take shape in the United States. Before now, the country had been lagging in terms of regulation.
According to reports, US govt officials who own crypto can not work on crypto regulation. This means they cannot participate in policy-making that affects the value of digital assets.
US Office Of Government Ethics (OGE) Announces New Restriction
The OGE released a notice on July 5th concerning the “de minimis exemption.” The exemptions allow owners of securities below a threshold to take part in making decisions connected to that security.
Unfortunately, the OGE stated it does not apply in the case of cryptos and stablecoins. The department added that:
“Any employee that has crypto or stablecoin cannot take part in certain matters. This is applicable especially if such matters would affect the value of the stablecoins or crypto in their possession.”
Furthermore, the notice added clarification for assets not under securities. It said the ruling applies to crypto and stablecoins, whether they are securities or not.
Meanwhile, the notice provided a scenario as an example. It stated that:
“If an employee owns $100 worth of stablecoin, he or she partake in stablecoin regulation. They will only be allowed to participate in the regulation if they sell-off that stablecoin.”
According to Cointelegraph, the rule applies to all government employees in The Federal Reserve. It also includes those in The Department of the Treasury and The White House.
An Exemption To The Latest Restriction
Meanwhile, there is an exemption to the OGE’s crypto ownership rule. Policymakers in the US can hold about $50,000 as mutual funds.
These mutual funds can be invested in companies that benefit from blockchain and crypto technology. Mutual funds are allowed because they are diversified funds.
Presently, there are harsh rules surrounding employee investment in the cryptocurrency sector. However, the country continues to work toward regulation and integration of the crypto sector.
Furthermore, Joe Biden, US President, recently announced a “whole-of-government” mechanism for regulating the crypto sector. This was after Biden ordered government bodies to assess the effect of cryptocurrency on its economy.
According to Cabital’s co-founder, Raymond Shu, recent proposals are beneficial to the US crypto industry. These proposals can make the US among the Western nations fully regulate digital assets.
The regulation will make digital assets, including stablecoins, part of the US financial system. Meanwhile, the Senator Lummis crypto bill has not yet been approved.