Critics Raise Caution Over Congress Members Who Own Crypto Assets

As Congress begins to regulate the burgeoning cryptocurrency sector, critics have raised concerns about the increasing number of lawmakers who own digital assets, Bloomberg reported Tuesday (April 26).

Nearly two dozen members of Congress have bought and sold $1.8 million worth of crypto-related investments since the start of 2021, according to 2iQ Research, a German financial consultant and data provider. The figures were gathered from public disclosures.

Researchers reported that 21 senators and representatives on Capitol Hill, or their immediate family, traded cryptocurrencies, crypto-investment products and stocks in crypto-related businesses. Of that group, seven members serve on committees in the Senate or House that hold regulators accountable.

The news service reported these findings amid the backdrop of protest against Congressional members who are allowed to trade securities while holding office. When it comes to crypto, the Securities and Exchange Commission and the Commodity Futures Trading Commission are trying to determine which role to play in regulating the asset class.

“We need public confidence that Congress is making the right rules for the right reasons,” Richard Painter, former chief White House ethics lawyer and University of Minnesota law professor, told Bloomberg. “This is going to undermine public confidence in the crypto market.”

In March, PYMNTS reported President Joe Biden signed an executive order establishing a single, government-wide policy on cryptocurrencies and other digital assets.

Read more: Biden’s Executive Order Set to Fast-Track Crypto Policy

A fact sheet released by the White House noted that 16% of the population, or 40 million Americans, use or have used cryptocurrencies.

The president said the “rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier.”