A new advisory released by the US has stated that government officials who privately hold cryptocurrencies will be prohibited from being involved in regulations and policies that could affect the value of digital assets.
The notice released by the US Office of Government Ethics (OGE) states that although the ban is applicable, it only applies with a de minimis exemption.
All workers of the federal government, including those at the White House, the Federal Reserve, and the Treasury Department, must abide by the new regulations.
The de minimis exemption permits the owners of securities holding a sum below a certain limit to work on policy related to that security. However, note that the de minimis exemption is universally inapplicable considering cryptos and stablecoins.
Additionally, owners can still invest in cryptos through publicly-traded securities and mutual funds of companies involved with crypto, blockchain services and also stablecoins.
This does not mean that government officials can’t own cryptos at all, but they might lose out on the chance to work on crypto-centred policies.
But again, they can be involved in the policy making decisions provided they divest their investment from crypto into investment alternatives holding policies’ interest.
The notice stated that “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.”
As for investing in crypto-affiliated stock index listings, the capital limit is $50K and above this limitation, the de minimis exemption becomes invalid.
Also read: UK & US Partner for Cross-Border Crypto Regulation
