Government Employees with Cryptocurrencies Forbidden from working on Crypto Legislation in US
U.S. Government personnel who actively invest in cryptocurrencies or are discovered to be in possession of any are prohibited from taking part in the creation of legislation and policies pertaining to cryptocurrencies, according to a recent order from the US Office of Government Ethics.
There Are Some Exemptions
Additionally, the advisory notice made clear that even if the restriction is in effect, it only does so with a de minimis exemption.
Owners are still able to invest in cryptocurrencies through publicly traded shares and mutual funds of businesses offering cryptocurrency and blockchain services because of this exemption. Stablecoins and all other forms of cryptocurrency are included.
Government personnel can still acquire cryptocurrencies. Nonetheless, doing so will prevent them from contributing to the drafting and implementation of crypto-related regulations.
They can still work on such initiatives, though, provided they divert their cryptocurrency holdings into other financial opportunities. However, even for those who are permitted to invest in cryptocurrency-related stock index listings, a $50k threshold has been set above which the de minimis exemption is no longer valid.
Crypto Investors Adversely Affected
The cryptocurrency market isn’t in the best of shape right now, even if the Biden administration is concentrating on creating laws for cryptocurrencies after the POTUS signed an executive order for the same.
The continued bearishness is having an impact on cryptocurrency companies as the overall market cap of all cryptocurrencies is struggling to reach $1 trillion.
Voyager Digital has filed for Chapter 11 bankruptcy a week after stopping the platform’s withdrawal, trading, and deposit services after Harmony nearly went bankrupt a while back.
Thus, even without the US GOE’s decision, it would only take crypto investors a short while to exit the market, just like how other investors are already doing.
With US president Joe Biden declaring a “whole-of-government” approach to regulation concerning the digital asset sector, the United States continues to advance in integrating the cryptocurrency industry, despite the restrictions that look strict about employee participation in the sector.
Co-founder and CEO of Cabital Raymond Shu claims that current legislative initiatives could make the United States the only Western nation to fully regulate and accept stablecoins and other digital assets as known components of the financial system.
State of Crypto Regulation
Cryptocurrencies are becoming more widely accepted, but there is still cause for concern. These assets have frequently been utilized to commit fraud and money laundering due to the market’s extraordinary volatility. The ability of regulators to proactively impose fines or even shut down non-compliant cryptocurrency enterprises has been shown.
Regulators do not want to stifle innovation, and some are aware that cryptocurrencies might contribute to the growth of the economy. In order to do this, they have been diligently working over the past few years to develop a legislative framework that is progressive and accommodating but also responsible.
Defining token types and purposes, determining how they fit within current law, and creating a licensing system have all advanced significantly. A few regulators have promoted open communication with the sector and established sandboxes for businesses to test their solutions.
