United States (US) lawmakers have shown their support for legislation to ban members from making stock-oriented or cryptocurrency-oriented investments, which can be addressed by the 118th Congress after a transition in leadership, as reported by Cointelegraph.
According to Cointelegraph, from January 3, 2023, next session of US Congress begins where Republicans will have control on account of a slight majority after the 2022 Midterms, while Democrats will have a majority in the Senate. Reportedly, Kevin McCarthy, a Republican executive, stated in January, 2022, about prohibiting lawmakers from holding and trading stocks which could also be extended to crypto.
On the basis of information by Cointelegraph, uncertainty exists whether McCarthy will be able to assume leadership of the House. It is believed that many have pointed towards elected officials being permitted to trade and hold certain assets during their office time. Reportedly, at the 117th session of Congress, 77 lawmakers were in violation of the Stop Trading on Congressional Knowledge Act (STOCK Act). Financial ties amongst US lawmakers and industry leaders were considered controversial in the crypto space in 2022. Executives of crypto exchange FTX, including Sam Bankman-Fried, former CEO, FTX, donated to politicians and campaigns related to both Republicans and Democrats.
Moreover, Cointelegraph noted that Zoe Lofgren, chair of the Committee on House Administration, unveiled a framework in September, 2022, for lawmakers altering the STOCK Act to ban both members of Congress and Supreme Court, “from trading stock or holding investments in securities, commodities, futures, cryptocurrency, and other similar investments.” Reportedly, Federal Open Market Committee agreed to similar rules to prevent Federal Reserve’s senior officials from purchasing and holding crypto.
(With insights from Cointelegraph)