Crypto investments count in conflict of interest

Bydiana

Jul 11, 2022 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

The U.S. Business office of Govt Ethics (OGE) reported federal employees of the executive department owning cryptocurrencies or mutual funds investing in the sector need to recuse them selves from any subject related to the industry.

See linked report: CFTC Commissioner Pham suggests regulators remain tech-neutral on stablecoins

Speedy points

  • The July 5 memo clarified that the agency does not think about crypto belongings as publicly traded securities, which would be normally exempt from OGE regulation.
  • Workforce can own publicly outlined shares of companies engaged in the development of cryptocurrency or stablecoins or similar providers.
  • Nevertheless, they want to recuse them selves if they own mutual funds directly involved with crypto and connected sectors more than the US$50,000 exemption limit.
  • Mutual funds with a stated intent of investing broadly in businesses that would profit from or use blockchain technologies are considered diversified funds by the OGE and are exempt. 
  • Workers can personal mutual cash that commit in the stocks of computer system hardware makers that cater to the crypto business, the OGE memo stated.

See associated article: US crypto invoice leaves ‘open question’ on securities: Tessler

By diana