According to the rules of the US Office of Government Ethics (OGE), stablecoins and cryptocurrencies do not meet the criteria for “publicly traded securities.” As a result, it prohibited people who own digital assets privately from taking part in federal policies that might have an impact on the value of those tokens.
Recommendation of the OGE
Government employees who own securities may apply for the “de minimis” exemption and resume their duties if they do not exceed a specific threshold, according to the OGE’s most recent legal advisory. However, since the organization does not consider cryptocurrencies to be “publicly traded securities,” employees who are HODLers will not be permitted to participate in Federal regulations and policies:
Therefore, if an employee knows that a particular matter could have a direct and predictable impact on the value of their cryptocurrency or stablecoins, they may not participate in it. This rule applies to anyone who owns any amount of a cryptocurrency or stablecoin.
It is important to note that all government employees, including those employed by the White House, the Department of the Treasury, and the Federal Reserve, are subject to the law.
Employees, on the other hand, are exempt from participation in certain governmental affairs if they hold “disqualifying financial interests” in a mutual crypto fund that is managed according to the necessary regulations. If the employees are the real owners of the money, they might also get involved.
According to the OGE, mutual funds specializing in cryptocurrencies and stablecoins should qualify as “sector funds.”
The organization noted that diversified funds are “mutual funds with a stated purpose of investing broadly in companies that would benefit from or use blockchain technology.”
According to the OGE, it can be challenging to determine a specific mutual fund’s nature at times. In these situations, the agency promised to carefully scrutinize the entities and “look beyond the fund name to the prospectus” to assess their roles.
Government Employees With Crypto
For many US politicians and officials, the world of digital assets has become an intriguing niche. One such example is Senator Cynthia Lummis, who has held bitcoin for a long time. She joined the ecosystem in 2013, when the asset cost about $300, and last summer she added up to $100,000 worth of the asset to her stockpile.
Senators Pat Toomey of Pennsylvania, Ted Cruz of Texas, Congressman Mark Green, and Congressman Michael McCaul are additional members of that club.