• Tue. May 28th, 2024

New Law Says US Govt Officials Must Disclose NFT Holdings 

Jul 21, 2022

According to reports, the United States government now requires staff to disclose their NFTs holdings. This is coming after the Office of Government Ethics (OGE) prohibited govt workers who possess cryptocurrencies from working on legislation.

OGE Asks US Government Officials To Release Details Of NFT Holdings 

The OGE has released legal advice regarding NFTs. This new rule would govern the disclosure of NFTs for government officials.

Previously, the general rule was that employees must disclose NFTs above $1,000 in valuation. This also encompasses those retained for the generation of income and investment. 

However, the OGE has added that all NFTs be disclosed. The statement further adds that NFTs that bring in over $200 within the disclosure timeframe are also subject to reporting obligations. 

With no exception, government employees must disclose all NFTs. This includes all acquisitions and sales of NFTs and F-NFTs (fractionalized NFTs) that are structured as securities.

New Regulations Call For Thorough Description Of NFTs 

Furthermore, the OGE said all disclosures must contain a comprehensive explanation of the NFT. This includes the kind of NFTs and the platform’s identity housing them.

This legal guidance requires people also to include other information. This includes how the government official acquired the NFT using stablecoins or crypto.

According to the government institution, this aims at increasing transparency in the country. Moreover, the purchasing history of the owner can assist officials in determining the reason for the NFT.

In some cases, a certain NFT can be held for investment purposes. This is usually the case for costly and rare NFTs. Such NFTs are generally held for investment purposes.

As per the regulation, F-NFTs are usually held for two primary purposes. This includes the generation of revenue and investment purposes.

An Explosion Of Regulations In The United States 

Earlier in the month, the OGE released a regulatory framework for government officials. This legislation prohibits government workers who possess crypto from working on regulations. This is because they may make regulations that would impact the prices of these digital assets.

According to the OGE, all workers in government institutions must abide by the regulation. This includes federal entities, Federal Reserve, US Treasury, and White House employees.

However, there is an exemption. This is for federal personnel who own mutual funds in businesses involved in the crypto sector. Also, these mutual funds must be worth less than $50,000.

These actions serve as a surge in cryptocurrency legislation in the US. Moreover, the United States is taking the issue of crypto regulation very seriously. 

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