Powered By:

Path 18@2x

The United States Office of Government Ethics (OGE) released an advisory policy on July 5, 2022 stating that any government employee who holds cryptocurrency, stablecoins, or any other digital asset will be ineligible to work on any regulatory matter that may affect the price of their personal assets. The OGE releases such legal advisories from time to time to make federal officers and employees aware of what they can and cannot do.

As a result of this advisory, government employees who also hold any amount, even a very minor amount, of a cryptocurrency will be unable to participate in any regulatory or policy matters. Specifically, this applies if the employee “knows that particular matter could have a direct and predictable effect on the value of their cryptocurrency or stablecoins.” While there are de minimis thresholds for publicly traded securities, the OGE concluded that no such de minimis exceptions are available for cryptocurrency holdings.


This advisory policy will have the negative consequence of eliminating a significant number of regulators that have shown willingness to embrace the technology on a personal level by investing in cryptocurrencies. Unless government employees divest themselves of their personal digital currency investments, they will be disqualified from regulating on any matter involving these assets.

The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm or its clients, or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.


Fill out the following form to receive our cryptocurrency news and analysis.

Author's Assets


Anthony Tu-Sekine | PARTNER

As the head of Seward & Kissel’s Blockchain and Cryptocurrency Group and a frequent commentator on all things crypto, Anthony advises clients on a wide range of evolving topics, including how to structure and issue security and utility tokens, registered and unregistered offerings of security tokenstoken custody, transfer and liquidity issues, non-security opinions, and investments in crypto assets by funds and other investors. A recognized leader on physical precious metals funds, Anthony represented APMEX Inc. and alternative asset manager Sprott Inc. in connection with the launch of OneGold.com, which allows investors to own gold documented on blockchain.

You can work with regulators or you can really try to piss them off… If you really want to do the latter, then you should expect that they will bring every tool they have against you.

Anthony’s thoughts on BitMEX indictment, as published in Law360 article “BitMEX Case Seen as Blessing in Disguise for Crypto Sector”