CFTC will hold a meeting to discuss cryptocurrency related issues

Political ethics and government transparency groups want politicians to disclose their digital currency holdings

Over the past few months, US regulators and some legislators have been studying and drafting regulatory guidelines for digital assets such as Bitcoin. Last year, Colorado Democrat Jared Polis and Arizona Republican David Schweikert formed the “Congress Blockchain Core Group”. This core group was established to help the government develop regulatory policies for cryptocurrency and blockchain networks. Both Schweikert and Polis have enacted the “Crystal Currency Tax Equity Act,” while other US legislators are drafting regulations for digital assets.

According to a recent report, the support of these politicians for cryptocurrencies has raised concerns among members of some government transparency organizations. These organizations include "Sunlight FoundaTIon" and "Office of Government Ethics."

Alex Howard, deputy director of Sunlight FoundaTIon, explained in an interview:

“Whether a congressman holds Bitcoin can help us understand where their interests are.”

Legislators supporting bitcoin and blockchain decide not to hold cryptocurrencies to avoid conflicts of interest

We have recently reported that California lawmakers on behalf of Diane Feinstein drafted a bill requiring US citizens to disclose their cryptocurrency assets. In addition, at a recent judicial hearing, Feinstein explained that the bill would criminalize intentional concealment of holding or controlling a digital currency account.

The staff at the Polis and Schweikert offices gave detailed instructions that neither of the two members of Congress had bitcoin or other digital assets. Ashley Sylvester, a member of Schweikert's congressional group, explained that parliamentarians "deliberately" do this to avoid conflicts of interest in regulatory decision-making. The US Stock Act of 2012 requires politicians to disclose assets such as stocks and bonds. The law's advocate, Louise Slaughter, believes that these assets should also include currencies such as Bitcoin.

Slaughter stressed: "This provision of the stock bill allows the public to believe that members of Congress have not made a profit through their office."

“No one can circumvent this regulation, including those who invest in digital currencies.”

Disclosure of foreign exchange speculation and drafting cryptocurrency transparency rules

Democratic representative Jared Polis said he plans to discuss new regulatory guidelines with the US Securities and Exchange Commission (SEC) to ensure that politicians and staff will disclose their cryptocurrency holdings.

Polis explained: “Members of Congress absolutely need to disclose their bitcoin holdings to avoid any conflict of interest – the public needs this transparency.”

Jim Harper, an executive at the CompeTITIve Enterprise Institute, believes that if Bitcoin operates only as a currency rather than a speculative commodity, the situation may be different. “If Bitcoin is just a currency, then the holder does not need to report, but the IRS treats the virtual currency as taxable property, so the transparency principle requires people to disclose the holdings.” The vice chairman of the organization also said that The Ethics Committee should classify digital currencies as foreign exchange speculation, especially when it comes to members of foreign affairs organizations dealing with various monetary legislation.

This article only represents the author's personal opinion, does not represent the position of the blockchain pencil, does not constitute investment advice, the content is for reference only.