In a move of some significance, the White House has put its stamp of approval on the ethics side of crypto law. According to officials, President Trump is in favor of putting fresh limits on federal personnel who have any dealings with the cryptocurrency industry. It is a defining moment that ushers in a more watchful approach to the rules and standards governing this fast-moving corner of the digital asset space.
Historic Move by the White House
The White House has put to rest any speculation on the matter. As CoinDesk reports, its officials have made it clear that President Trump is in favor of putting a hard cap on what federal employees can and cannot do in the crypto space. It is being called a historic step, one that redefines the way top-level government officials are to deal with digital assets and the companies behind them. The administration’s intent is to put an end to longstanding questions about conflicts of interest and the risk of insider information being used improperly.
Implications for U.S. Crypto Regulation
If the White House puts an ethics clause in place for crypto law, it will be a move with the potential to alter how digital assets are regulated in the U.S. We have covered on the CoinDesk channel how these kinds of steps are meant to restore confidence in the way the government handles its crypto policy and enforces it. The idea is to keep federal officials from being too involved with the industry, and in doing so, make the rulemaking process more transparent and above board.
Then there is the matter of what this means for the rest of the world. With the U.S. typically viewed as the leader when it comes to financial oversight, a firm stand on ethics in the crypto space here could well be the nudge other nations need to make their own changes.
Community and Industry Reaction
Word of the White House’s pledge to put an ethics clause in crypto legislation has been making ripples in the blockchain world and among policymakers. In a recent CoinDesk session, our guests put it in perspective: for some in the industry, it is about time; for others, there is concern that too much red tape might put off the very people you want in a regulatory seat.
Then again, there is little dispute over the need for firm rules to head off any kind of overreach and to keep the market steady. With the U.S. on the cusp of this kind of first, what matters now is how these standards are put into practice.
Source — CoinDesk: https://www.youtube.com/watch?v=OozNqzBLy_w
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