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The Digital Chamber of Commerce has called on the US government to lift its 2022 crypto ban on federal employees, emphasizing the benefits of de minimis holdings.
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This request underscores the belief that greater access to cryptocurrencies could enhance regulators’ understanding of digital assets, leading to improved policy-making.
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A recent report from the Chamber advocates for USD-backed stablecoins as a pathway to reinforce the dominance of the US dollar in global markets.
The Digital Chamber of Commerce urges the US government to allow federal employees to own cryptocurrency, promoting de minimis holdings for better regulation.
Conflicts of Interest Restrict Federal Employees’ Access to Cryptocurrencies
In a significant move, the Digital Chamber of Commerce addressed the Office of Government Ethics (OGE) in a letter dated November 13, advocating for a reevaluation of the policy prohibiting federal employees from owning cryptocurrencies. This policy, implemented during Biden’s administration in 2022, was largely motivated by concerns regarding conflicts of interest that could arise from such ownership.
The Chamber contends that nearly three years post-implementation, sentiment may shift, particularly as discussions around crypto regulations continue to evolve. The letter requests the reconsideration of OGE Legal Advisory 22-04, the directive that currently bars federal employees from holding cryptocurrencies, including stablecoins, which has been the source of contention.
The key argument made by the Chamber is that allowing a limited amount of cryptocurrency holdings—termed as de minimis holdings—would not only mitigate concerns of ethical breaches but would also equip policymakers with real-world experiences of the asset class they are regulating.
“Today, we called on the US Office of Government Ethics (OGE) to reconsider their blanket crypto-holding prohibition for federal employees,” stated the Chamber. “Allowing de minimis holdings—like other asset classes—would foster more informed regulation while maintaining ethical standards.”
The Chamber’s president, Cody Carbone, expands on this by suggesting specific thresholds for ownership that would keep risks minimal while aligning with established practices that permit limited ownership of other financial assets by government employees.
The Case for Stablecoin Legislation and the Strengthening of Dollar Dominance
Additionally, the Chamber’s advocacy extends to the realm of stablecoins. On November 12, they released a comprehensive report titled “How Stablecoins are Extending US Dollar Dominance: A Policymaker’s Guide to Action.” This document not only emphasizes the importance of clearer regulations surrounding stablecoins but also positions them as vital tools for bolstering the US dollar’s global standing.
According to the findings presented in the report, **over 98%** of existing stablecoins are pegged to the US dollar. The Chamber argues that fostering the growth of USD-backed stablecoins can significantly enhance financial inclusion in emerging markets while providing a counterbalance to foreign financial systems that threaten the dollar’s supremacy.
By advocating for stablecoin utilization, the Chamber suggests US policymakers can leverage these assets to preserve the dollar’s value and preemptively navigate rising competition in the global financial landscape.
Implications for Policymaking and Financial Regulation
The proposed policy changes could have profound implications for how cryptocurrencies are approached within federal regulatory frameworks. By allowing federal employees to own small amounts of cryptocurrency, the government may gain valuable insights into the evolving nature of digital assets, leading to regulatory reforms that are not only informed but also reflective of the realities of the crypto market.
Moreover, the Chamber’s initiatives aim to establish a regulatory environment conducive to innovation, ensuring that the US remains a leader in the digital asset space while balancing ethical considerations. As these discussions unfold, it remains to be seen how federal institutions will respond to this call for changes that would modernize their relationship with the rapidly advancing field of cryptocurrency.
Conclusion
In summary, the Digital Chamber of Commerce’s push for policy revisions regarding federal employees’ cryptocurrency holdings reflects a growing recognition of the need for lawmakers to engage directly with digital assets. By advocating for de minimis holdings and supportive regulations on stablecoins, the Chamber emphasizes that such measures could enhance understanding and innovative policymaking. Whether these appeals will yield tangible changes in federal regulations remains a pivotal question for the future of crypto governance in the United States.
