Digital Chamber urges US government to allow small crypto holdings for employees

The Digital Chamber of Commerce has urged the US Office of Government Ethics to reconsider prohibiting federal employees from holding crypto.

In a Nov. 13 letter to Acting Director Shelley Finlayson, the blockchain advocacy group proposed that the Ethics Office allow federal employees to own a small, limited amount of digital assets.

Under current regulations issued in 2022, federal workers are barred from holding any crypto, including stablecoins, due to concerns over potential conflicts of interest. These rules prevent employees from participating in official matters that could impact the value of their crypto.

Argument for crypto holding

The Digital Chamber argued that allowing limited crypto ownership among federal staff would not create conflicts of interest.

Instead, it would align with current policies allowing government employees to hold other financial assets in restricted amounts. The group contends this approach would provide a consistent framework for managing potential conflicts.

The Chamber also suggested extending similar exemptions to minor crypto holdings would ensure fair treatment across various asset classes. This change, they believe, would give employees more explicit guidelines while supporting equity in ethical standards.

The group emphasized that a more balanced approach to digital asset ownership would help federal employees better understand the technologies they regulate. This would, in turn, contribute to a regulatory framework that balances consumer protection, financial stability, and technological progress.

Call for stablecoin legislation.

This call for policy reform aligns with the Chamber’s broader advocacy for regulatory clarity around stablecoins. The organization has recently appealed to lawmakers to prioritize stablecoin legislation, citing the growing role of stablecoins in global savings and cross-border payments.

The Chamber notes that over 98% of stablecoins in circulation are pegged to the US dollar. So, by supporting USD-backed stablecoins, the US can extend its dollar dominance, increase dollar access in emerging markets, and reinforce national security during geopolitical uncertainty.

The organization also noted US policymakers have a unique chance to fortify the dollar’s global position, counter potential risks from rival payment systems, and solidify the US’s financial influence on the international stage.