Crypto owners in the US who were previously able to decide on matters of digital assets regulation are not happy, as an advisory notice has just been released, banning such entities from the decision-making process involving cryptocurrencies, effective immediately.
The US Office of Government Ethics (OGE) has released this document as a precaution, stating that crypto, token, and stablecoin owners could potentially have the power to tip the scales of the market in their favor and affect the prices of their assets of choice, if they are involved in creating policies. The notice states:
“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.”
The new rules also apply even in the case that cryptocurrencies would “constitute [a security] for purposes of the federal or state securities laws.” Furthermore, the notice applies to every federal level, including The White House, The Federal Reserve, and The Department of the Treasury.
Despite having an exception of being able to invest in crypto holding companies as a part of their portfolio diversification, the crypto-investing regulators are surely not happy about the recent decision, even if it seems sensible from an ethical point of view.