In a way, the U.S. House of Representatives has gotten wiser to the current effects of cryptocurrencies on our economy, including the ways in which people are investing their earnings.
Reportedly, as of June 18th, every representative that currently serves in the House and holds more than $1000 of crypto will be required to publicly disclose these holdings in their annual Financial Disclosure statements.
Therefore, we might soon know exactly who is fully behind the crypto movement and with a certain degree of certainty, who is not.
On top of this, the disclosure requirements don’t stop with a House member’s holdings.
They will also be required to publicize any sort of participation in ICOs, as well as any extra income that they earned from the mining of cryptocurrencies.
An original article by Cointelegraph on the subject adds that all of these required disclosure will be sectioned under the heading, “other forms of securities.”
Consequently, it is also possible that with this suggestion, we will not explicitly know whether the House member is reporting Crypto earnings or something else entirely.
Even so, the same Cointelegraph piece adds that spouses of House members must also make the same disclosures under a different heading, titled, “Assets and Unearned Income.”
In addition to this, all transactions with Cryptocurrencies will be mentioned under the general heading, “Transactions,” which actually seems to refute the idea that we might not explicitly know what type of earnings as well as what type of transactions are being mentioned.
Overarching all of this, according to Bloomberg, is the existing precedent that all lawmakers cannot earn more than $28,050 a year from something other than their government work.
Interestingly enough, while crypto payments including those related to mining are subject to earnings disclosure requirements, crypto trading is not.
With this knowledge, is it then possible for lawmakers to use this loophole to supplement their annual income with day trading or something similar? Will the SEC and all other regulatory bodies address this later?
Strangely enough, while we wait for this answer, it has also come to light that government employees who do not work for the highest branches, will be subject to arguably more stringent requirements.
They will have to report any crypto holdings over $1000 just as lawmakers will have to do, but they will be required to also disclose all income from crypto over the amount of $200 that falls within the federal financial disclosure reporting period.
In short, lawmakers might be able to hide some of their dealings given the current holes in this legislation, while normal federal employees probably will not be able to do the same.
By: BGN Editorial Staff