US lawmakers set to ban stock and crypto trading in next session of Congress

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United States (US) lawmakers have shown support for legislation prohibiting members from making equity- or cryptocurrency-based investments, which may be addressed by the 118th Congress after a leadership transition , as Cointelegraph reported.

According to Cointelegraph, from January 3, 2023, the next session of the US Congress will begin where the Republicans will have control due to a slight majority after the 2022 midterms, while the Democrats will have the majority in the Senate. Apparently, Kevin McCarthy, a Republican leader, said in January 2022 that lawmakers were prohibited from owning and trading stocks that could also be extended to crypto.

Based on information from Cointelegraph, there is uncertainty as to whether McCarthy will be able to assume leadership of the House. Many are believed to have indicated that elected officials were allowed to trade and hold certain assets while in office. According to some sources, during the 117th session of Congress, 77 lawmakers violated the Stop Trading on Congressional Knowledge Act (STOCK Act). Financial ties between US lawmakers and industry leaders were seen as controversial in the crypto space in 2022. Leaders of crypto exchange FTX, including former FTX CEO Sam Bankman-Fried, made donations politicians and campaigns related to Republicans and Democrats.

Additionally, Cointelegraph noted that Zoe Lofgren, Chair of the House Administration Committee, unveiled a framework in September 2022 for lawmakers to amend the STOCK Act to bar members of Congress and the Supreme Court to trade in stocks or hold investments in securities, commodities. , futures, cryptocurrency and other similar investments. According to reports, the Federal Open Market Committee has agreed similar rules to prevent senior Federal Reserve officials from buying and holding crypto.

(With information from Cointelegraph)

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