Which Lawmakers Are Jumping into the Crypto World?

If you thought only a few members of Congress are dipping their toes into the cryptocurrency market, think again. In recent months, some lawmakers have been quietly buying and selling digital assets. This raises a big question: should members of Congress trade cryptocurrencies when they might be involved in regulating them? Picture this: a few weeks after Donald Trump's reelection, Representative Mike Collins from Georgia spotted an opportunity. He started buying thousands of dollars’ worth of a meme coin called Ski Mask Dog. His legally required disclosure drove the coin's price up by over 100 percent. This might seem like a smart move, but it also highlights a rarity: very few members of Congress are trading crypto, despite the growing enthusiasm. Only four members, including Collins, reported buying or selling crypto in the past two years. This suggests that not much has changed since 2021, when a review found only 11 members were invested. Why the hesitation? There are several reasons. Some financial advisers might be cautious, and there are concerns about conflicts of interest. Mark Hays, a policy analyst, pointed out that many Americans see crypto as speculative and risky. Opinions among lawmakers vary. Some think Congress is too old to understand crypto, while others are glad so few members own crypto-related securities they're supposed to regulate. Despite the low trading activity, Congress has been keen on crypto. The last Congress took it up as a pet cause, and the new one seems even more eager to push it into the mainstream. In May 2024, the House passed a bill that would transfer oversight of digital assets from the SEC to the CFTC, seen as friendlier to the industry. Although the Senate didn't pick up the bill, the election results showed strong support for crypto. Crypto-allied groups spent generously to back candidates from both parties.

Some lawmakers’ enthusiasm for crypto stands out. Senator Bernie Moreno, who unseated the incumbent Democrat, even called it “bitcoiners’ dream. ” Donald Trump himself has promised to make the U. S. the "crypto capital of the planet. " However, the actual holdings of these elected officials paint a different picture. Back in 2021, only two senators and nine representatives held crypto. In the recent Congress, only four members traded crypto, even after a rebound following the FTX collapse. Besides Collins, the other traders were Reps. Barry Moore, R-Ala. ; Shri Thanedar, D-Mich. ; and Jeff Jackson, D-N. C. This discrepancy between public statements and personal investments has drawn criticism. Some lawmakers, like Senator Cruz, think it's due to a lack of familiarity with crypto. Others, like Senator Lummis, worry about how such investments would be perceived. Elizabeth Warren sees it as a conflict of interest. One controversial case was Representative Madison Cawthorn's involvement with the "Let’s Go Brandon" coin. He promoted and sold the coin without following disclosure rules and was ultimately fined $14, 000 by the Ethics Committee. This highlights the quick conflict-of-interest allegations that can arise from crypto trading. Despite the controversy, Representative Collins bought a meme coin called Ski Mask Dog, which saw its value more than double after his purchase. While some in the crypto community support members putting their holdings in a blind trust, others are more skeptical about such moves. This raises important questions about transparency, conflict of interest, and the role of lawmakers in thecrypto market. As crypto gains more attention in Washington, these issues will only become more pressing.

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