US Digital Chamber Requests Reconsideration of Crypto Ban for Federal Employees
The US Digital Chamber of Commerce has requested the government to reconsider its ban on federal employees holding digital assets. This request coincides with a potential shift towards a more pro-crypto stance under the Trump administration.
In a letter to Acting Director Shelley Finlayson on November 13, the Chamber proposed that the Ethics office permit federal employees to own a limited amount of digital assets.
The Biden administration prohibited federal employees from holding cryptocurrencies in 2022, including stablecoins, due to concerns over conflicts of interest. These regulations prevent employees from participating in official activities that could affect the value of their crypto holdings.
The Digital Chamber argued that allowing small amounts of crypto ownership would not necessarily lead to conflicts of interest and would align with existing policies permitting limited crypto holdings for federal employees.
Additionally, the Chamber suggested extending similar exemptions for minor crypto holdings to ensure equitable treatment across asset classes. They believe this change would provide clearer guidelines for employees and promote fairness in ethical standards.
The group emphasized that a balanced approach to digital asset ownership would enable federal employees to better understand the technology they regulate, aiding in the development of a regulatory framework that balances consumer protection, financial stability, and technological innovation.
Digital Chamber Demands Stablecoin Regulation
The Digital Chamber of Commerce advocates for policy reforms that provide greater regulatory clarity around fiat-pegged stablecoins. The organization urges US lawmakers to prioritize stablecoin regulation, highlighting the increasing significance of crypto assets in global savings and cross-border payments.
Tether, the last stablecoin issuer, has recently increased its USDT printing amid a growing number of crypto market participants. However, Tether's regulatory status remains uncertain due to past investigations.
The Chamber noted that over 98% of stablecoins in circulation are pegged to the US dollar. Supporting USD-backed stablecoins could enhance the dollar's dominance, improve access to the dollar in emerging markets, and bolster national security amidst geopolitical uncertainties.
US policymakers have a unique opportunity to strengthen the dollar's global standing, mitigate risks from competing payment systems, and reinforce the US's financial influence worldwide.