The US Office of Government Ethics (OGE), amid growing interest in NFTs, has released a set of rules to monitor the activity of government officials in the non-fungible token market.
The Service, which regulates the activities of the presidential administration and 130 government departments, has published a legal guide for civil servants who have non-fungible tokens on their balance sheet. OGE recommends that officials report NFTs in excess of $1,000 in their financial statements. In the opinion of the regulator, all profits received as a result of trading or exchange of NFTs, generating income in excess of $200, should be noted in the report.
OGE insists that non-fungible tokens are securities, so information about the ownership of NFTs by government employees should be public. The Authority believes that if officials do not use collectible tokens to earn and invest capital, then there is no need to reflect information about the ownership of NFTs in financial statements. In such a situation, non-fungible tokens are considered a household item.
To ensure transparency, the management has attached a list of seven points, after reading which, you can understand how collectible tokens – securities – differ from NFTs as household items. Each item contains questions such as: “Is this NFT rare? Have you bought an NFT in the hope that its price will rise? How much did you buy the collection tokens for?”
American legislators have long been reporting to the Financial Commission on the funds on the balance of crypto wallets. In 2021, U.S. Senator Cynthia Lummis from Wyoming reported to the US Securities and Exchange Commission on buying up to $100,000 of bitcoin.
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