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The US Digital Chamber of Commerce has requested the government to reconsider its 2022 ban on federal employees holding digital assets, while allowing small amount of crypto holding.
Key Notes
The Chamber emphasized that permitting minor crypto holdings would ensure fair treatment across asset classes.It also proposed helping federal employees better understand the technologies they regulate, ultimately fostering a regulatory framework that balances consumer protection, financial stability, and innovation.The organization also advocates for clearer regulations around stablecoins, particularly those pegged to the US dollar, to reinforce the USD's global dominance.The US Digital Chamber of Commerce has requested the government to reconsider banning federal employees from holding digital assets. This development comes as the US government is likely to take a more pro-crypto stand moving ahead under the Trump administration.
In its letter to Acting Director Shelley Finlayson on Wednesday, November 13, the Digital Chamber proposed that the Ethics office should allow federal employees to own a small and limited amount of digital assets.
Back in 2022, the Biden government barred federal employees from holding any cryptocurrencies. It even included barring holding stablecoins citing concerns over potential conflict of interest. These rules prohibit employees from engaging in official activities that could influence the value of their crypto holdings.
Furthermore, the Digital Chamber argued that allowing small amounts of crypto ownership for the federal staff won’t necessarily create a conflict of interest. Instead, it would align with the existing policies allowing federal government employees to hold crypto in limited amounts.
The Chamber also recommended extending similar exemptions to minor crypto holdings to ensure fair treatment across different asset classes. They believe this change would provide employees with clearer guidelines while promoting fairness in ethical standards.
Additionally, the group has stressed a balanced approach to digital asset ownership will allow federal employees to understand the technology they regulate. They argue that this would help create a regulatory framework that balances consumer protection, financial stability, and technological innovation.
Digital Chamber Demands Stablecoin Regulation
The Digital Chamber of Commerce calls for policy reforms aligning with the group’s advocacy for greater regulatory clarity around the fiat-pegged stablecoins. Furthermore, the organization appeals to US lawmakers to prioritize stablecoin regulation, while citing the growing role of crypto assets in global savings and as well as cross-border payments.
The last stablecoin issuer Tether has been on a USDT USDT $1.00 24h volatility: 0.3% Market cap: $126.68 B Vol. 24h: $139.76 B printing spree recently amid the rising number of crypto market participants. However, Tether’s regulatory acceptance remains in doubt amid alleged investigations of the firm in the past.
The Chamber highlights that more than 98% of stablecoins in circulation are pegged to the US dollar. By supporting USD-backed stablecoins, the US can strengthen its dollar dominance, expand access to the dollar in emerging markets, and enhance national security amid geopolitical uncertainty.
The organization also pointed out that US policymakers have a unique opportunity to bolster the dollar’s global standing, mitigate potential risks from competing payment systems, and reinforce the US’s financial influence on the world stage.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
