US authorities must now publicly declare NFT holdings
Two weeks after banning crypto-owned government employees from working in politics, the US government is now insisting that employees declare their holdings of non-fungible tokens (NFT).
The Office of Government Ethics (OGE) this weekend issued a legal advice to regulate reporting requirements for financial disclosure that apply to NFTs.
The general rule of thumb to follow is that NFTs held for investment or “production of income” exceeding a value of $ 1000 must be reported within the prescribed window.
The document adds that the reporting requirements will apply to NFTs that generate over $ 200 in revenue within the reporting window. All transactions involving the sale and purchase of NFTs and fractional NFTs (F-NFTs) in the form of collateral shall be disclosed without exception.
New rules insist on a “full and complete” description of NFT
The OGE archiving requirements force all disclosures to include a “complete” description of the NFT, including the type of collectible and the name of the platform on which it is stored.
In an effort to promote transparency, legal advice mandates individuals to indicate how NFT was acquired, either through cryptocurrencies or stack coins.
If NFT is rare and expensive, it can be interpreted as being held for investment purposes, while the purchase history of the owner can help officials decide whether a particular NFT purchase is held as an investment.
The rule notes that “F-NFTs are almost always held for investment or production of income and must therefore be reported in general.”
A lot of regulations
Earlier this month, OGE banned government employees who own cryptocurrencies from working on policies that could affect the value of such assets.
The rule applies to all government agencies including the White House, the Federal Reserve and the US Treasury Secretary.
The only exceptions are for government employees who have less than $ 50,000 in mutual funds in companies operating in the cryptocurrency industry.
These measures have been considered as a primer for an incoming wave of cryptocurrency regulations.
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