US lawmakers could consider stock trading ban in next session of Congress

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All members of Congress are already required to study astir investments successful stocks and cryptocurrency, but galore person pointed to imaginable conflicts of interest.

US lawmakers could see  banal  trading prohibition  successful  adjacent  league   of Congress

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Many United States lawmakers from some sides of the aisle person astatine 1 constituent expressed enactment for authorities banning members from investing successful stocks oregon crypto — an inaugural the 118th Congress could code pursuing a displacement successful leadership.

Beginning connected Jan. 3 arsenic the adjacent league of the U.S. Congress opens, Republicans volition instrumentality power of the House of Representatives with a slim bulk pursuing the 2022 Midterms, portion Democrats volition support a bulk successful the Senate. Kevin McCarthy, a Republican typical successful contention to beryllium the adjacent Speaker of the House, reportedly said successful January 2022 helium would see an outright prohibition connected lawmakers holding and trading stocks — a measurement which presumably could widen to crypto — should his enactment flip the chamber.

It’s unclear astatine the clip of work whether McCarthy has the votes to presume enactment of the House — a process which volition apt statesman starting Jan. 3. However, galore person pointed to elected officials being allowed to commercialized and clasp definite assets portion successful bureau arsenic a imaginable struggle of interest.

Members of Congress should not ain oregon commercialized idiosyncratic stocks. And neither should their spouses.

— Elizabeth Warren (@SenWarren) January 2, 2023

In the 117th league of Congress, a 77 lawmakers reportedly violated disclosure requirements nether the Stop Trading connected Congressional Knowledge Act, oregon STOCK Act, archetypal passed successful 2012. These violations included delayed reporting of allowable trades, but members were inactive permitted to grip authorities connected matters which could person been influenced by their ain investments.

For example, pro-crypto Senator Cynthia Lummis, who sits connected the Senate Agriculture Committee and oversees hearings concerning the Commodity Futures Trading Commission, has disclosed investments successful Bitcoin (BTC) — recognized arsenic a commodity by the fiscal regulator. Senator Pat Toomey, ranking subordinate of the Senate Banking Committee, besides antecedently reported purchases of Ether (ETH) and BTC, but helium volition beryllium retiring arsenic of 2023.

Kevin McCarthy promised if Republicans took implicit the House, helium would enactment connected a banal trading ban. But he’s gone silent.

A radical of 5 House Rs accidental they can't enactment McCarthy due to the fact that he’s not trustworthy.

McCarthy’s Speaker bid is successful peril. House members volition ballot adjacent Tues.

— More Perfect Union (@MorePerfectUS) December 28, 2022

Financial ties betwixt U.S. lawmakers and manufacture leaders were astatine the forefront of large controversies successful the crypto abstraction successful 2022. Executives astatine crypto speech FTX, including erstwhile CEO Sam Bankman-Fried, made contributions to politicians and campaigns for some Republicans and Democrats — a determination that had galore successful the manufacture questioning lawmakers’ objectivity successful hearings aimed astatine investigating the firm’s collapse.

Related: Alexandria Ocasio-Cortez says US lawmakers shouldn't clasp crypto to 'remain impartial'

Zoe Lofgren, seat of the Committee connected House Administration, introduced a model successful September aimed astatine lawmakers changing the STOCK Act to prohibit some Members of Congress and the Supreme Court — arsenic good arsenic their spouses and babelike children — “from trading banal oregon holding investments successful securities, commodities, futures, cryptocurrency, and different akin investments.” There was nary question successful the projected argumentation alteration successful 2022, but the Federal Open Market Committee approved akin rules banning elder officials astatine the Fed from purchasing and holding crypto.

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