Members of the House of Representatives, the lower chamber of the U.S. Congress, have to start revealing cryptocurrency assets that surpass $1,000.
The instruction was presented in a June 18 memo drawn up by the House Ethics Committee. According to the memo, the panel established that cryptocurrencies are “different types of securities for purposes of the EIGA (Ethics in Government Act) and financial disclosure with regard to people who are at the mercy of financial disclosure prerequisites and who file their reports with the Clerk of the House.”
It is a significant determination and one which was released the same day when the Office of Government Ethics (OGE) – the ethical watchdog of the federal government – stated in its personal instruction release that public authorities need to reveal their crypto-holdings, as initially reported by Bloomberg.
Whether this regulation will reach the Senate, the upper chamber of Congress continues to be ambiguous. A spokesperson for the Senate Ethics Committee had been inaccessible for further remarks.
Remarkably, the document additionally stretches to initial coin offerings (ICOs) or token sales. As of now, the committee stated that “it is uncertain which ICOs, if any, might be considered to be ‘the subject of an initial public offering’ for purposes of the IPO prohibition.”
As a result of the STOCK Act, members of Congress are restricted from engaging in any sort of special-access security offerings that are not expanded to the general public.
“Consequently, any House Member, officer, or employee who is thinking about taking part in an ICO is strongly urged to get in touch with the Committee for advice before doing this,” the memo states.