A recent report by Raw Story sheds light on a Republican congressman who allegedly violated a federal financial disclosure law by failing to report two crypto purchases within the required timeframe.
The congressman in question, Rep. Mike Collins (R-GA), reportedly purchased Ethereum (ETH) on October 9 and November 5. However, Collins did not publicly disclose them until December 22, well past the deadline mandated by the Stop Trading on Congressional Knowledge (STOCK) Act.
Crypto Investments And Congressional Ethics
Enacted in 2012, the STOCK Act was designed to combat insider trading, address conflicts of interest, and enhance transparency in Congress.
It requires members of Congress to publicly report most purchases, sales, and exchanges of stocks, bonds, commodity futures, securities, and crypto within 45 days. Failure to comply with these disclosure requirements can result in penalties.
According to the Raw Story report, Rep. Collins disclosed his two Ethereum purchases, each valued between $1,001 and $15,000, on December 22. This was well beyond the mandated disclosure deadline.
The report also highlights that other lawmakers, including Sen. Angus King (I-ME), were late in their crypto disclosures, albeit by a shorter period.
The report notes that violating the STOCK Act carries a standard fine of $200. However, it further highlights that several bipartisan bills have been introduced, such as the Ending Trading and Holdings In Congressional Stocks (ETHICS) Act and the Ban Stock Trading for Government Officials Act, aiming to ban congressional stock trading and strengthen ethics regulations.
39 Members Of Congress Accused Of Violating STOCK Act
Raw Story’s investigation identified at least 39 members of the 118th Congress, including Rep. Collins and Sen. King, who allegedly violated the STOCK Act.
Additionally, the report points out other legislators whose stock and crypto investments may pose potential conflicts of interest with their committee appointments.
Some of the lawmakers mentioned include Sens. Tommy Tuberville (R-AL), Markwayne Mullin (R-OK), and Reps. Bill Keating (D-MA) and Debbie Dingell (D-MI).
Overall, the alleged violation of federal financial disclosure laws by Rep. Collins and other members of Congress, as reported by Raw Story, raises concerns about transparency and conflicts of interest.
The outcome of these investigations and potential reforms will be closely watched as lawmakers strive to maintain public trust and accountability in their financial activities.
However, the penalties or fines of up to $200 imposed on members of Congress for violating the STOCK Act pale compared to the lawsuits or subpoenas faced by crypto exchanges, customers, or firms that violate federal laws.
This stark disparity highlights a significant discrepancy between the treatment of Congress members and individuals or entities within the nascent crypto industry.
At the time of writing, the price of ETH stands at $2,250. It has shown a recovery with a 2.3% gain over the past 24 hours following a dip toward the $2,100 level on Wednesday.
Featured image from Shutterstock, chart from TradingView.com