US Bans Crypto Holders from Working on Government Policies

Share Article
In Brief
  • Government officials will not be allowed to work on crypto policies if they hold crypto assets.

  • Those who hold up to $50,000 in mutual funds that include crypto companies can still work on policies.

  • The U.S. government has been taking a broad range of actions to regulate the crypto market.

  • promo

    Top Crypto Exchanges Without KYC Read Now

The Trust Project is an international consortium of news organizations building standards of transparency.

The U.S. government has banned employees working on regulations and policies affecting digital assets from owning cryptocurrencies.

The government’s Office of Government Ethics (OGE) has established new rules citing what is essentially a conflict of interest.

The regulation covers many aspects related to the crypto market, including stablecoins. The notice reads:

“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 notice states that the de minimis exemption — which allows for the owners of securities who hold an amount below a certain threshold to work on policy related to that security — is universally inapplicable when it comes to cryptocurrencies and stablecoins.

Rule applies to all government agencies

However, government employees will be allowed to work on related policies if they divest their holdings. The rule will 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 working in the crypto space, or close to it. 

The United States has ramped up regulation of the crypto market in the past 18 months. Several of these developments have happened in the last six months, as the government aims to protect investors and prevent criminal activity.

Stablecoins are a prime target for regulation, with the recent TerraUSD (UST) crash fresh in lawmakers’ minds. The Federal Reserve is considering a CBDC, which some say can coexist with stablecoins, though panelists at a recent conference said that the scope for cross-border applications was limited.

The United States Securities and Exchange Commission (SEC) is currently conducting a number of investigations into cryptocurrencies.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Rahul's cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

Follow Author