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The U.S. Office of Government Ethics (OGE) advised government workers of the executive branch to abstain from any discussions involving the business if they own cryptocurrencies or invest in the space through mutual funds.
The agency made it clear in a document dated July 5 that it does not view digital currency as a type of publicly traded security that would otherwise be free from OGE regulation.
Employees are permitted if…
Employees of businesses involved in the creation of stablecoins, cryptocurrencies, or similar services may possess publicly traded shares of those businesses.
However, if they hold mutual funds that are directly tied to cryptocurrency and other related industries and exceed the US$50,000 exemption limit, they must abstain from voting.
The OGE considers mutual funds that have a declared goal of investing extensively in businesses that would profit from or use blockchain technology to be diversified funds and free from its regulations.
According to the OGE document, employees are permitted to possess mutual funds that invest in the equity of companies that provide computer hardware for the cryptocurrency business.
In accordance with a legal advice statement issued by the U.S. Office of Government Ethics (OGE) on Tuesday, any cryptocurrency or stablecoin is not covered by the de minimis exemption, even if the preceding cryptocurrencies “constitute securities for purposes of Even if the following cryptocurrencies “constitute securities for purposes of the federal or state securities laws,” this remains true.
The Treasury Department and Federal Reserve workers, as well as every member of the White House staff, must follow by the instruction.
Some White House employees who have been upfront about their cryptocurrency holdings, like Tim Wu, a technological consultant to the Biden administration who possesses millions of dollars in bitcoin, would probably feel the effects of the policy strongly.
Wu has previously voluntarily stepped away from the crypto policy project.
The ability to work on the crypto-related policy will still be available to federal workers who have less than $50,000 invested in a mutual fund with exposure to the cryptocurrency industry.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
