All members of Congress are already required to report most investments in stocks and cryptocurrency, but many have pointed to potential conflicts of interest.
Many US senators on both sides of the aisle have simultaneously expressed support for legislation prohibiting members from investing in stocks or cryptocurrencies – a move by the 118th Congress that could be discussed following the change of direction.
On January 3, when the next session of the US Congress opens, Republicans will narrowly control the House of Representatives after the 2022 midterm elections, while Democrats will retain the majority in the Senate. Kevin McCarthy, a Republican representative aspiring to be the next speaker of the House, said in January 2022 that he would consider a legal ban on holding and trading stocks – a move that could be extended to crypto – but if his team returned to the room.
At the time of publication, it was not known whether McCarthy had a vote to appoint a leader of the House – a process that will begin on January 3. However, many have pointed out that elected officials are allowed to trade and hold certain assets while in office as a potential conflict of interest.
During the 117th session of Congress, 77 lawmakers were charged with violating disclosure laws under the Stop Trading on Congressional Knowledge Act, or STOCK Act, which was first passed in 2012. These violations include late reporting of accepted transactions, but members are allowed to manage the rules regarding investments that they may affect.
For example, pro-crypto Senator Cynthia Lummis, who sits on the Senate Agriculture Committee in charge of Commodity Futures Trading Commission hearings, revealed investments in Bitcoin BTC ($16,722) – Recognized as a commodity by the accountant. Senator Pat Toomey, chairman of the Senate Banking Committee, also previously reported buying Ether ETH ($1,216) and BTC, but will be retired by 2023.
The financial relationship between US lawmakers and corporate leaders is leading to a major conflict in the crypto space in 2022. The leaders of the crypto exchange FTX, including former CEO Sam Bankman-Fried, have donated to politicians and campaigns for both Republicans and Democrats – a move that has caused many company officials to question the intentions of the senator’s order during the hearing to investigate the failure of the company.
Zoe Lofgren, chairwoman of the House Oversight Committee, introduced measures in September to urge lawmakers to amend the STOCK Act to prevent members of Congress and the Supreme Court — and their spouses and dependent children — “Trading in stocks or investing in securities. , commodities, futures, cryptocurrencies, and other similar investments. No movement on policy changes is expected in 2022, but the Federal Open Market Committee has approved a similar rule prohibiting senior Federal Reserve officials from buying and holding crypto.
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