Any employee who possesses cryptocurrencies is prohibited from working on Federal crypto regulation, according to a recent legal advice notice from the US Office of Government Ethics.
Private cryptocurrency owners in the US government are no longer permitted to participate on legislation or other initiatives that could have an impact on the value of digital assets.
According to a new advisory notice issued by the US Office of Government Ethics (OGE) on Tuesday, stablecoins and cryptocurrencies are universally exempt from the de minimis exemption, which permits owners of securities to work on policy related to those securities if they hold an amount below a certain threshold.
“As a result, an employee who holds any amount of a cryptocurrency or stablecoin may not participate in a particular matter if the employee knows that particular matter could have a direct and predictable effect on the value of their cryptocurrency or stablecoins.”
The notification gave an example of a situation where an employee is asked to work on stablecoin regulation but only owns a little amount of that stablecoin ($100)—in this case, the employee is prohibited from doing so “until and unless they divest their holdings in [that] stablecoin.”
According to the notice, even if the disputed cryptocurrency or stablecoin were to ever “constitute [a security] for purposes of the federal or state securities laws,” this judgement would still hold.
All workers of the federal government, including those at the White House, the Federal Reserve, and the Treasury Department, must abide by the new regulation.
The statement “the law does not occupy itself with trifles” is the lengthier Latin origin of the term “de minimis.”
Policymakers are permitted to retain up to $50,000 in mutual funds that invest broadly in businesses that would profit from cryptocurrency and blockchain technology, which is the sole exception to the OGE’s assault on crypto ownership. This exemption is justified by the fact that they “are considered diverse funds.”
With US president Joe Biden declaring a “whole-of-government” approach to regulation concerning the digital asset sector, the United States continues to advance in integrating the cryptocurrency business, despite the restrictions that look strict about employee participation in the sector.
Co-founder and CEO of Cabital Raymond Shu claims that current legislative measures might allow the United States the only Western nation to fully regulate and embrace stablecoins and other digital assets as integral aspects of its economy.