Cryptocurrencies are now officially part of the finances that each U.S. House Of Representatives staff should disclose. Cryptocurrencies owned by the house members will be considered as “other forms of securities.”
This entails members to report all their cryptocurrency transactions that exceeded $1,000, through Financial Disclosure statements and Periodic Transaction Reports over the course of the year.
Bringing Cryptocurrency Into the Spotlight
The Committee on Ethics memorandum exposes the large cryptocurrency investments that any U.S. House Of Representatives staff may be hiding. Even the staff’s family members are liable to the new changes.
According to the official memo, any exchange, purchase or sale of stocks, bonds or “other forms of securities,” which now include cryptocurrencies, made by members, including their spouse or dependent child, must now be filed via PTRs 45 days after its transaction, if its value amounts to more than $1,000.
Members who engage in cryptocurrency mining seem to be affected by the memo as well. Any amount earned through cryptocurrency mining is subject to the outside earned income limit, which is currently affixed to $28,050.
Furthermore, any cryptocurrency that has increased to over $1,000 in value over the years, should also be reported via a Financial Disclosure statement regardless if the amount was initially bought for a meager $1. Perhaps, these changes will be able to unearth the amount of cryptocurrency that’s been circulating from within the system.
Despite the effort that cryptocurrency is making in terms of decentralization, it seems like the government still has a stake in its influence and proliferation. According to Forbes, there is a multitude of reasons why the government is incessantly imposing its presence on cryptocurrencies. Cryptocurrency does have a bad reputation given its involvement in shady deals such as illegal arms trade and drug trafficking.
With that said, it’s only natural for the government to intervene in order to prevent cases of money-laundering and other illegal activities that involve cryptocurrency. Another reason is that the government still acts as protectors for cryptocurrency investors who are vulnerable to fraud.