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The American Ethics Council in relation to cryptocurrencies of federal employees has a basis in the

Office of Government Ethics, it reminded employees on the ethics of federal agencies about current legislation and extended their interpretation of the law to mutual funds.

When July 5, the US government ethics department (OGE) issued legal advice 22-04, the most attention attracted its conclusion that federal employees who own any amount of cryptocurrency or stabilcoins cannot participate in the regulation and development of a policy relating to cryptocurrencies. Legal consultation (LA) caused some issues, since the exceptions of De minimis - threshold amounts below which the ownership of assets is permissible - are a common occurrence in the government. La is more understandable if you look at it in a wider context. ## ## about

Oge does not give an interview, so it is very successful that the video recording of the discussion of LA by the senior assistant to OGE adviser Christopher Schwartz appeared on the office youtube channel the next day After Cointelegraph made a request. Svartz discussed several points in detail and emphasized that LA is an interpretation of the current legislation to help federal servants in its application and "understand the law in the form in which it exists." Oge has no position on digital assets in general. In 2018, OGE issued a consultation on the disclosure by federal employees of information about cryptoactives. In the light of the growing spread of cryptocurrencies among the population and federal employees, Schwartz explained: "We realized that it was time to reconsider this area, make sure that we have established the basic rules, especially with regard to the law on a conflict of interests, which is a criminal law." The law spoke about the Svartz dates back to 1962 and, according to the Swertz, "does not allow federal employees to take part in any particular case in which they have financial interest." He is deliberately wide and "agony" in relation to details. The law does not have an element of materiality, that is, the exclusion of de minimis, which allows federal employees to own small amounts of something. Related to this: Larks in the US Congress on regulating digital assets are concentrated on disclosing information According to the law, Oge has the right to cancel the laws on a conflict of interests for all employees or categories of employees, if financial interest is too remote to influence the expected services of employees. Agencies may provide exceptions in each case in agreement with Oge. In 1996, Oge created several exceptions. For example, publicly traded shares of a company engaged in cryptocurrency services are already falling under the exception. LA clarifies that the registered mutual fund related to cryptocurrency derivatives, such as futures, may have one of two exceptions: the exclusion of Per SE for diversified mutual funds or the exclusion of De minimis in the amount of $ 50,000 for industry funds. Not a single exemption of OGE applies to cryptocurrencies, says LA, since cryptocurrencies are not qualified as publicly traded securities. "This is true, even if individual cryptocurrencies or stabilcoins are securities in accordance with federal legislation or securities state legislation," La says. Cryptocurrency is not publicly traded security The definition of a "publicly traded security" is narrower than the definition of "securities", La notes. The LA resolution does not concern a wider question about which cryptocurrencies or stabiboons are securities, and does not consider the reasons for the lack of exception. Nevertheless, Aitan Gelman, Zuckerman Spaeder partner and former director of the law enforcement department of commercial futures trade, said Cointelegraph: "If I were a lawyer representing Ripple, I think I would raise the opinion of Oge, despite the fact that Oge is trying to distinguish my definition of publicly traded securities from the determination of securities in accordance with [test] Howe [test]." “OGE opinions are very influential in agencies,” Helman continues. All experts with whom Cointelegraph consulted agreed with the high moral authority of the agency and the lack of a political agenda. Philip Mustakis, an adviser to the blockchain group and cryptocurrencies Seward & Kissel and a former employee of the SEC Asset Management unit, said Cointelegraph in an email: "I do not think that you can read any subtext here." Experts also agreed that LA will be respected throughout the government, despite the fact that Oge does not have law enforcement, along with its regulatory powers. In fact, it seems that ethical standards are already widely observed. Interpretation of LA and a detailed commentary on how information disclosure requirements are applied to mutual funds can be new, but ethical requirements -

Elizabeth Boyson, partner of Hogan Lovells, former prosecutor of the Ministry of Justice (DOJ) and member of the National Group The fight against cryptocurrencies at the ministry, said Cointelegraph: "Before the regulators have clarified these rules, regulatoryLyators did this anyway. [...] Even in the absence of leadership, we discussed this issue [in the Ministry of Justice] and, as a rule, did not adhere to it. ” Gelman noted that recently the perception of corruption has become a political issue, and LA helps to reduce the perception of financial violations in the government.

Reverse Party Oge La

The question of what needs to be done so that Oge published a decree on the creation of an exception that allows the storage of cryptocurrency De Minimis, Helman answered simply: “Motivation”. Schwartz rejected the argument that the ban on owning cryptocurrencies would push people away from a career in the government, saying that Oge developed ways to help "eliminate the financial confusion" of new federal employees. Nevertheless, there are arguments in favor of politicians own cryptocurrencies. “One of the things that the regulator should understand is how these things work,” Boyson said. She called the procedures “Know your client” and setting up wallets as examples of activity in which real experience is valuable for regulators. She proposed to create a "sterile, disinfected laboratory", where regulators could go through all procedures. Similar materials: Know your client: KYC future in cryptocurrencies After 10 days, La 22-04 was followed by another advice related to cryptocurrencies, this time about disclosing information about the possession of non-playful tokens. The fractional and collectible NFTs worth $ 1,000 or more should be presented in the reporting if they are “held for investment or income”, as well as investments in NFT, which bring a profit of more than $ 200 during the reporting period.

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8/9/2022