The US Office of Government Ethics (OGE), which oversees government ethics laws and policies, has issued a new legal recommendation for public financial disclosure filers who own non-fungible tokens (NFTs).
Guidance entitled “Financial Disclosure Reporting Considerations for Collectable Non-Fungible Tokens and Split Non-Fungible Tokens” was issued by OGE Director Emory A. Rounds III’s office and NFT is eligible for categories and finances. Explains the submission method in detail. Disclosure.
Government officials have stated that if you have an NFT or fragmented NFT (F-NFT) worth more than $ 1,000 to generate investment or income, you will need to file a financial disclosure. increase. Or if the asset generated more than $ 200 in revenue during the reporting period.
“… Public financial disclosure filers retain ownership of collectable NFTs and F-NFTs if their assets are retained for investment or income generation and are worth more than $ 1,000 at the end of the reporting period. , Or if they generate more than $ 200 in income, they must be disclosed. Reporting period, “said Guidance.
The guidance seven-part test can be used to distinguish between NFTs held for personal, family, or home use and is exempt from disclosure. The test includes questions such as whether the NFT was purchased for personal or aesthetic reasons, or primarily because of its potential value.
You must also submit financial disclosures for the purchase, sale, or exchange of NFTs or F-NFTs worth more than $ 1,000, as securities defined by US Securities Act, such as the Securities Act of 33 and 34. He added that he was eligible.
The $ 1,000 benchmark is the same as that obtained from disclosures of transactions involving stocks, fixed income, commodity futures, and other types of securities. The filer must disclose the transaction within 30 days of receiving the confirmation of the transaction through OGE Form 278e.
U.S. Promotes Regulatory Clarification in Digital Asset Markets
In a similar publication earlier this month, OGE clarified the application of securities and trust exemptions to digital currencies, stablecoins, and related investments. Guidance promulgated that OGE does not consider digital assets to be listed securities.
Based on this, civil servants are not allowed to participate in federal regulations and policies that affect the industry if they own any amount of digital assets. However, this rule does not apply to federal lawmakers elected to civil servants.
On the other hand, OGE is not the only US agency offering new guidance to the digital asset market. The Treasury recently released a new framework for international involvement in digital asset regulation.
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