Blockchain advocacy organizations encouraged the Ethics Office to authorize federal employees to possess modest quantities of digital assets.
The Digital Chamber of Commerce has requested that the US Office of Government Ethics reconsider its 2022 regulation, which prohibited federal employees from owning cryptocurrency.
In a November 13 letter to Acting Director Shelley Finlayson, the blockchain advocacy organization requested that the Ethics Office allow federal employees to possess small quantities of digital assets, such as stablecoins.
The current policy prohibits federal employees from possessing any cryptocurrency due to concerns regarding potential conflicts of interest.
The purpose of these limitations is to prevent employees from influencing policies that could potentially impact the value of their holdings.
Nevertheless, the Digital Chamber contends that permitting restricted investments in other financial assets would be consistent with the current regulations that permit limited crypto ownership.
Minor crypto holdings would not violate ethical standards, as the Chamber underscored. In contrast, such a policy would assure employees of equitable treatment of digital assets in conjunction with traditional investments and provide them with more explicit guidelines.
The group also contended that permitting federal employees to possess cryptocurrency would facilitate their comprehension of blockchain technologies, thereby allowing them to make more effective contributions to policymaking that effectively balances innovation, financial stability, and consumer protection.
“The adoption of a nuanced position on digital asset ownership would enable agency personnel to gain a more comprehensive understanding of the technologies they oversee, thereby contributing to a regulatory framework that effectively balances technological advancement, financial stability, and consumer protection.”
After the Chamber requested that legislators prioritize stablecoin legislation, the proposition underscores the increasing significance of stablecoins in global finance.
The Chamber of Commerce thinks that promoting stablecoins backed by the US dollar might increase dollar dominance, broaden access to financial services in developing economies, and strengthen national security in the face of geopolitical concerns. More than 98% of stablecoins are linked to the dollar.
The Chamber also emphasized the distinctive opportunity for US policymakers to bolster the dollar’s global position.
The United States could bolster its financial leadership on the international stage and counter the influence of rival payment systems by promoting USD-backed stablecoins.
Bitcoin achieved a new all-time high of $93,000 on Wednesday, with favorable market conditions and increased institutional interest contributing to the request from the Chamber.
Investor confidence has been enhanced by the recent election of President Donald Trump, who has publicly advocated for cryptocurrency.
The surge has also had a positive effect on related assets, as Bitcoin ETFs have experienced substantial inflows.
Michael Saylor’s MicroStrategy has further fortified its status as the largest corporate holder of Bitcoin by purchasing 27,200 BTC, thereby further strengthening market sentiment.
According to the report, the acquisition was completed between October 31 and November 10, 2024, at an average price of $74,463 per coin, inclusive of commissions, and was valued at $2.03 billion.
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