An obscure ethics rule from 2022 threatens the incoming Trump administration's ability to develop effective digital asset policy, as it bars anyone with cryptocurrencies from federal service. This creates a dilemma for incoming officials who must either divest from the crypto sector or forgo public service. Current regulations allow Treasury officials to hold traditional investments while working on banking policy, but not cryptocurrencies. This inconsistency hampers the recruitment of experts needed as the U.S. faces competition from countries like Singapore and Switzerland in establishing clear digital asset frameworks. The author argues that modifying the ethics guidance to allow small holdings of digital assets, similar to traditional financial instruments, could enhance the capabilities of federal agencies. Alternatively, rescinding the advisory through executive order could signal a more balanced approach to crypto policy. Addressing these barriers should be a priority for the administration to ensure skilled positions are filled with knowledgeable individuals amid the transformative landscape of digital finance.

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