Three weeks after Donald Trump’s reelection victory sent cryptocurrencies on a bullish run, Rep. Mike Collins, R-Ga., discovered an opportunity.
Collins began purchasing thousands of dollars’ worth of a meme coin called Ski Mask Dog. His disclosure of those purchases helped drive the coin’s price up by over 100 percent.
This event reignited discussions about whether members of Congress should trade assets that fall under their supervision. It also highlighted the rarity of members of Congress buying or selling crypto despite the growing bipartisan enthusiasm for its adoption among Americans.
According to trading data from 2iQ, only four members of Congress, including Collins, reported buying or selling cryptocurrencies in the past two years. These four members were all from the House, with two Democrats and two Republicans among them.
The limited trading activity indicates little change in the number of lawmakers holding crypto since December 2021, when a Wall Street Journal review revealed that only 11 members of Congress were invested in it.
Various reasons were cited for this hesitance among lawmakers, including cautious financial advisers and potential conflicts of interest. Mark Hays from Americans for Financial Reform suggested that the majority of Americans view crypto as speculative and risky, which is a deterrent for lawmakers as well.
Despite significant enthusiasm for crypto on Capitol Hill, the actual trading of cryptocurrencies remains low among members of Congress. Factors like age, lack of familiarity, and concerns over criticism and conflicts of interest contribute to this trend.
In contrast to the excitement surrounding crypto legislation in Congress, only a few members engage in crypto trading. The Financial Innovation and Technology for the 21st Century Act, which aimed to transfer oversight of digital assets to a different regulator, passed the House but was not taken up by the Senate.
The recent election results demonstrated strong support for crypto in Congress, with candidates aligned with the industry seeing success. Both the old and new Congress show an eagerness to promote crypto adoption.
Members of Congress hold differing opinions on crypto, with some acknowledging the need for regulations but lacking familiarity with the technology, while others see the potential for conflicts of interest in owning crypto assets.
Overall, the discrepancy between public enthusiasm for crypto and actual ownership among lawmakers raises questions about ethical considerations and conflicts of interest in trading assets like cryptocurrencies within the political sphere.