US Government Officials Must Declare Their NFTs

US Supreme Court Building

✍️ 21 July, 2022 - 8:27 👤 Editor: Jakub Motyka

  • The rules on crypto assets and NFTs affect all types of users, including government workers.
  • In addition to having to declare their NFTs, they will have to describe them and confirm how they have obtained them.
  • Does this rule serve, in the long term, as a measure to avoid scams?

After weeks of barring government officials holding crypto from working in politics, the government is now requiring them to declare their NFTs. The United States Government, together with the Office of Government Ethics (OGE), issued a legal notice on regulating financial disclosure reporting requirements applicable to NFTs. The new rule says that NFTs held for investments or “income production” in excess of $1,000 must be reported.

Within the document it can also be seen that the reporting requirements will be extended to NFTs that generate more than USD 2,000. Hand in hand, all transactions related to fractional NFTs and F-NFTs, which take the form of securities, must be disclosed. This rule enters into a general framework of regulations for these tokens and other cryptoactives that are beginning to come into use.

How Does This NFT Disclosure Rule Affect US Officials?

As part of the filing requirements, OGE requires disclosures to include a complete description of the NFT. The description should include both the type of collectible it is, as well as the collection it belongs to and where it is stored. This is an attempt to promote ownership transparency among users. In other words, this forces people to indicate how and where the NFT was purchased, either with cryptocurrencies or stablecoins.

Earlier this month, the OGE prohibited government employees who own cryptocurrencies from working on policies that affect the assets. Its new rule on NFTs is a step forward, allowing its employees to have at least one relevant digital asset.

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