The Office of Government Ethics monitors the executive branch and has issued new instructions for filers of public financial disclosures who possess NFTs.
According to recent legal guidance from the Office of Government Ethics, workers of the executive branch of the United States who possess NFTs with a market value of more than $1,000 are required to report their assets.
The office supervises executive branch personnel in the White House and more than 130 federal departments. The recommendation for workers who submit public financial reports follows the NFT market’s high at the start of the year.
The new advice focuses on non-fungible and fractional non-fungible securities that are “virtual artwork, music, video files, trading cards, digital real estate, or virtual world commodities.”
According to the recommendation issued by OGE Director Emory A. Rounds III on Monday, public financial disclosure filers are required to declare NFTs with a value of more than $1,000 or that generate over $200 in investment income.
The recommendation states that filers of public financial disclosures must declare the acquisition, sale, and exchange of collected NFTs and F-NFTs that qualify as securities.
Filers are not required to record assets kept for personal, family, or household use as opposed to investment or production revenue. The office has previously said that domestic products such as furniture, clothes, and perishables are not reportable.
In the guidance, the agency outlined seven-factor criteria for assessing whether an NFT is kept for personal or investment purposes. The exam asks, among other things, if the NFT was acquired for personal or aesthetic reasons and whether it was purchased mainly for its prospective worth.
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