Digital Chamber Urges U.S. Government to Lift Crypto Ownership Ban
The Digital Chamber of Commerce is advocating for the U.S. government to lift its ban on cryptocurrency ownership for federal employees, proposing a de minimis allowance that would permit them to hold a limited amount of crypto. This measure aims to prevent conflicts of interest while enhancing regulators' understanding of digital assets, which could inform better policy decisions.
In a letter dated November 13 to Shelley Finlayson, Acting Director of the Office of Government Ethics (OGE), the Chamber requested the repeal of OGE Legal Advisory 22-04, which prohibits federal employees from owning cryptocurrencies, including stablecoins. This rule was implemented in 2022 under the Biden administration due to concerns about potential financial benefits from crypto holdings.
The Chamber contends that allowing limited crypto holdings—similar to existing rules for other asset classes—would provide federal employees with insights into the digital asset industry, fostering a deeper understanding of the sector they regulate. Cody Carbone, the Chamber’s president, noted that permitting employees to hold a small, safe amount of cryptocurrency would address potential conflicts of interest more equitably, akin to how other financial assets are managed.
The Chamber also pointed out that removing the ban could yield broader benefits, assisting policymakers in grasping emerging technologies and facilitating well-informed regulation.
Additionally, the Chamber published a report on November 12 advocating for clearer regulations regarding USD-backed stablecoins. Titled “How Stablecoins are Extending US Dollar Dominance: A Policymaker’s Guide to Action,” the report highlights that over 98% of stablecoins are tied to the U.S. dollar. The Chamber recommends promoting stablecoin adoption to enhance the dollar’s position in global finance and broaden access to financial services in developing markets.
By endorsing stablecoins pegged to the dollar, the Chamber believes the U.S. can reinforce the dollar’s supremacy and counter competitive financial systems from other countries, thereby maintaining its influence over global monetary systems and ensuring the dollar's relevance in an evolving financial landscape.