US bans crypto-owning government officials from working on regulations

Key ideas:

  • The United States EMB released the legal opinion today.

  • Employees holding cryptocurrencies will be prohibited from working on crypto regulations and policies.

  • The policy, however, does not prohibit them from investing in publicly traded crypto and blockchain companies.

In a new order issued by the US Office of Government Ethics, government employees who actively invest in or hold cryptocurrencies will be prohibited from participating in the development of regulations and policies focused on cryptocurrencies.

Exceptions for some

The advisory opinion also pointed out that while the ban is enforceable, it only applies with a de minimis exemption.

This exemption allows owners to continue investing in cryptocurrencies through publicly traded securities and mutual funds of companies involved in crypto and blockchain services. This includes all kinds of cryptos and stablecoins.

This does not mean that government employees cannot own cryptocurrencies at all, they can, but at the cost of losing the opportunity to work on crypto-related policies.

However, they can still work on such policies if they cede their crypto investment to investment options that do not hold the interest of the policies.

Further explaining the same, the review read,

“An employee who holds any amount of a cryptocurrency or stablecoin may not participate in a particular deal if they know that particular deal could have a direct and foreseeable effect on the value of their cryptocurrency. or its stablecoin.”

However, even for those who can invest in crypto-affiliated stock index listings, the cap is set at $50,000, beyond which the de minimis exemption becomes invalid.

Crypto investors take a hit

While the Biden administration is focused on crafting regulations for cryptocurrencies after the POTUS signed the executive order for the same, the crypto market itself is not in its best shape as of yet. this moment.

The total market capitalization of all cryptocurrencies is struggling to recover to $1 trillion, and the suspended decline is affecting crypto companies.

After Harmony nearly went bankrupt some time ago, Voyager Digital officially filed for Chapter 11 bankruptcy a week after suspending the platform’s withdrawal, trading and deposit services.

So even without the order from the US GOE, it would have only taken a little longer for these investors to exit the market, just as many other investors are doing now.

This article originally appeared on FX Empire

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