Congress and SCOTUS members expected to be banned from cryptocurrency investments | The Financial Express

Congress and SCOTUS members expected to be banned from cryptocurrency investments

According to Cointelegraph, chair Zoe Lofgren of the Commitee on House Administration stated her plan to combat financial conflicts of interest in the US Congress through restrictions imposed on financial activities of lawmakers and SCOTUS justices, as well as those of their spouses and children

Congress and SCOTUS members expected to be banned from cryptocurrency investments
Under the STOCK Act, lawmakers are needed to report the purchase, sale or exchange of any investment beyond $1,000 within 30-45 days

Members of the United States House of representatives, Senate and Supreme Court justices who currenttly engage themselves with cryptocurrency trading can be required to stop HODling while in office if a bill is able to get enough votes, as reported by Cointelegraph.

According to Cointelegraph, through a recently release framework, chair Zoe Lofgren of the Commitee on House Administration, who is responsible for daily operations of the House, stated her plan to combat financial conflicts of interest in the US Congress through restrictions imposed on financial activities of lawmakers and SCOTUS justices, as well as those of their spouses and children. According to the framework, if the bill gets approved then it would suggest a change in policy post the 2012 passage of the Stop Trading on Congressional Knowledge Act or STOCK Act. 

Congress can act to restore the public’s faith and trust in their public officials and ensure that these officials act in the public interest, not their private financial interest, by restricting senior government officials — including Members of Congress and the Supreme Court — and their spouses and dependent children from trading stock or holding investments in securities, commodities, futures, cryptocurrency, and other similar investments and from shorting stocks,” Lofgren said.  

On the basis of information by Cointelegraph, under the STOCK Act, lawmakers are needed to report the purchase, sale or exchange of any investment beyond $1,000 within 30-45 days but the law states minimal financial and legal repercussions for not filing, as much an amount as $200 late fee. The proposed framework recommended enforcing fines of $1,000 for every 30-day period an individual being in violation of disclosure rules, which would result in the late fee going up to $500. 

Moreover, Cointelegraph noted that senators Jon Ossoff and Mark Kelly made suggestions on similar reforms for the STOCK Act in the senate in January but no movement has been made on the bill in a period of over eight months.

(With insights from Cointelegraph)

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