United States advocacy group the Digital Chamber seeks new regulations to let federal staff hold small portions of digital assets. The blockchain advocacy group wants the Office of Government Ethics (OGE) to look into the restrictions placed on federal employees from holding cryptocurrencies.
In its letter dated November 13, the group stressed that the restrictions could be a stumbling block to the US crypto regulatory framework. Digital Chamber wants to remove the current blanket ban, enabling federal employees to hold small amounts of assets. It noted that the move will help them to be better informed about the crypto sector.
The group also noted that the move will enable policymakers to understand the technology behind the assets, leading to nuanced regulations. The regulatory framework will consider needed aspects like consumer protection, technological advancement, and financial stability.
United States advocacy group discusses the merits of its argument
The group clarified that the regulation should include a threshold for federal employees who want to Gold the assets. It believes that this way, there won’t be any conflict of interest for those tasked with policies. However, it failed to specify the minimum amount of assets it feels it can hold. Digital Chamber also clarified that its argument is in line with regulation that allows federal employees to hold small portions of other financial assets.
The group notes that it will help to settle conflict of interest issues for financial products, giving room for them to be treated equitably. “Extending similar exemptions to minor cryptocurrency holdings would ensure equitable treatment across various asset classes, providing clearer guidance to employees and upholding fairness in ethical considerations,” the group noted.
The request might be backed by political elites because most recently elected candidates are invested in the crypto sector. For instance, Vice President JD Vance is a big Bitcoin holder, and President Donald Trump also has wallets where he holds altcoins.
Republicans maintain House control, giving stablecoins a boost
According to the Associated Press, Republicans have maintained a full house in the House of Representatives, securing 218 members. With the development, the GOP is expected to continue its role as the head of the Financial Services Committee. Meanwhile, its current chairman, Rep. Patrick McHenry, will retire in 2025, putting the seat up for grabs.
McHenry is known for his pro-crypto stance, pushing legislation to regulate stablecoins and the wider crypto sector. His retirement is unlikely to stall his efforts, as those highlighted as potential replacements are also pro-crypto.
Similarly, Digital Chamber released a report signaling the effects stablecoins are having on the dominance of the dollar. The group wants US lawmakers to deliberate on the bill and pass it soon. The group’s president Cody Carbone thinks of the bill as a low-hanging fruit that will be supported by lawmakers pushing for the dollar’s dominance.
The group notes that the increased adoption of stablecoins is one integral reason why the bill should not fail. It also added that stablecoins should not be treated like securities, and banks and non-banks should be able to issue them. Presently, there are three stablecoin bills in the House and Senate all together.
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