US Restricts Officials Holding Crypto From Policy Making

Amid the increasing scrutiny over laws and policies related to cryptocurrency over the world, the US has issued an advisory for officials holding digital assets.

Crypto holding officials can affect policies

US Government’s Ethics Chief mentioned that officials holding digital assets will be restricted from guiding President Joe Biden over crypto related policies.

As per the release, any US govt employee holding any amount of crypto or stablecoins as a personal investment is barred from participating in any matter related to it. It added that the employee may know that any particular matter could have a predictable or direct effect on the worth of their holdings.

Earlier, OGE advised that stablecoins and crypto do not match the definition of “publicly traded securities”. This remains the same in the case if they constitute securities for purposes of the Federal securities laws. It added that these digital assets are not “publicly traded securities” thus no de minimis exemption will be applied.

Call for strict laws growing up

This big development has landed amid increased volatility in the global digital assets market. With the rapid increase crypto related activities, the call for strict regulation has also grown. Meanwhile, the Crypto market has shrunk to stand at $921 billion.

However, some allegations of officials’ involvement in certain crypto assets have been made by blockchain firms like Ripple. It has been engaged with the US SEC in a crucial lawsuit over its native token XRP’s nature.

In March, Biden signed an executive order calling federal agencies to work on crypto related policies. It also added fetching the possibility of a US digital dollar. The report states that the industry is trying to expand in Washington. However, political donations have jumped from these sectors.

However, the OGE has given the only exemption on the crypto ownership crackdown. Policymakers will be allowed to hold up to $50,000 in mutual funds.