Last year, several lawmakers on Capitol Hill continued to maintain their crypto investments, despite advocating for stricter regulations in the digital asset class. This information emerged as a surprising revelation considering their stance on tighter regulations.
According to CNBC, at least nine lawmakers in the House and Senate engaged in trading over a dozen different crypto stocks in 2022. The data was obtained from the Capitol Trades website, which monitors stock trades conducted by Washington's lawmakers.
Out of the ten offices contacted, only one admitted to selling their crypto stock holdings following the collapse of FTX. The remaining nine lawmakers showed resilience despite the significant decline in crypto and mining-related stock prices witnessed throughout the year.
During a U.S. Senate Agriculture Committee session in 2022, Senator Tommy Tuberville disclosed his ownership of crypto assets and inquired about the responsible party overseeing crypto's environmental, social, and governance ratings.
Similarly, when questioned about his crypto holdings, Senator Pat Toomey stated that he was holding onto roughly $30,000 worth of Grayscale Bitcoin Trust (GBTC:US) and Grayscale Ethereum Trust (ETHE:US) funds as of the end of the previous year, alongside his wife.
Senator Cynthia Lummis, as per her financial disclosure reported that she owned between $100,001 to $250,000 worth of Bitcoin (BTC:US). She also submitted a joint bill proposing the regulation of crypto assets as commodities rather than securities. A spokeswoman for Lummis emphasized her commitment to being a "self-proclaimed HODLR" and maintained that her perspective remains unchanged.
Ethics attorney Kedric Payne from the Campaign Legal Center highlighted the conflict of interest that arise when lawmakers possess crypto assets. While they are actively working to regulate the sector in the aftermath of the FTX meltdown, their personal investments introduce a potential bias. Striking a delicate balance is crucial for lawmakers to avoid over-regulation that may alienate a growing voter base that is knowledgeable about cryptocurrencies.
In terms of the overall market outlook, this week witnessed a brief relief rally, which quickly subsided as markets once again turned bearish. According to CoinGecko, markets declined by nearly 1% with the total capitalization falling to $888 billion. Although there had been a slight recovery following the FTX-induced crash of the previous year, the general sentiment remains bearish.