Roughly 40% of American adults own cryptocurrencies, according to Security.org; that’s approximately 93 million people. Meanwhile, over a fifth of those who don’t own any yet say that crypto ETFs make them more likely to invest in the future. Despite the growing popularity, Congress members responsible for regulating crypto assets have very little skin in the game.
In this article, we’ll look at how you can find your congressperson’s crypto holdings, where today’s Congress members stand, and how these trends could affect regulations.
Congressional Requiring Requirements
In recent years, dozens of lawmakers have found themselves in hot water over suspected insider trading. For example, Rob Wittman, R-VA, traded shares of three defense contractors while he was a member of the House Armed Services Committee, and Jim Langevin, D-RI, sold shares in Facebook a week after a company representative testified.
To avoid these issues, Congress passed the STOCK (Stop Trading on Congressional Knowledge) Act in 2012, requiring members of Congress, their staff, and executive branch employees to report their financial transactions, including stock and crypto, within 45 days. It also prohibits members from using non-public information for financial gain.
Forms that Congress members are supposed to fill out to disclose their financial transactions. Source: House.gov
CapitolTrades provides one of the easiest ways to track Congressional crypto transactions. After selecting “House” as the Congress Chamber and “Crypto” as the Transaction Label, you can easily see a sorted list of transactions over time.
While the STOCK Act provides a clearer picture of Congressional trades, it hasn’t stopped lawmakers from making secret trades. Nearly 80 members of Congress have been found not to comply with the Stock Act in recent years. And their excuses range from clerical errors to forgetful accountants when asked about their trades.
Nevertheless, the STOCK Act helps provide a glimpse into the crypto trading activities of Congress members—although the results may surprise you.
Crypto Transactions on Capitol Hill
The STOCK Act requires lawmakers to report their financial transactions within 45 days, but still, only a handful of lawmakers have made disclosures. The scarcity of crypto activity among elected officials starkly contrasts with the growing adoption of the general public. Those responsible for writing the rules have surprisingly little skin in the game.
Who’s Buying Crypto?
Only two sitting Congress members have bought crypto since 2021—Michael Collins, R-GA, and Barry Moore, R-AL.
Collins was a net buyer of Ethereum, the second most popular cryptocurrency, beginning in October 2023 and ending in January 2024. These purchases ranged from $18,000 to $95,000 at prices from $1,580 to $2,333—a discount to today’s $2,300 prices.
Moore bought $1,000 to $15,000 worth of Bitcoin at $69,645 in late March 2024.
Others have purchased crypto-adjacent holdings in recent years. For example, Garret Graves, R-LA, purchased Coinbase Global Inc. (COIN) stock in late 2022, while Marie Newman, D-IL, bought Coinbase and Grayscale Bitcoin Trust (GBTC)—a stock that Bitcoin backs.
In the Senate, Ted Cruz, R-TX, is the only member that bought or sold crypto. He purchased between $15,000 and $50,000 worth of Bitcoin in early 2022 for $36,954. With prices hovering near $55,500 today, he is likely sitting on a significant capital gain.
Who’s Selling Crypto?
Shri Thanedar, D-MI, and Jeffrey Jackson, D-NC, also reported selling cryptocurrencies over the past two years.
Thanedar sold between $250,000 and $500,000 worth of Bitcoin, $100,000 to $250,000 worth of Ethereum, and $15,000 to $50,000 worth of Litecoin in February. However, he noted that the sale only moved assets to a new account, and he remains a holder.
Jackson sold between $1,000 and $5,000 worth of Cardano and the ANKR token in January 2023. According to a spokesperson, the move came after he decided to “divest from all individual stocks and cryptocurrencies upon becoming a member of Congress.”
Who Owns Crypto?
Determining who owns crypto is a little more challenging because disclosures don’t always tell you who owns—they focus on who’s buying and selling.
Cynthia Lummis, R-WY, for example, reported owning $100,000 to $250,000 worth of Bitcoin in 2021 and hasn’t reported any activity since. However, he put her assets in a blind trust in 2022 and, therefore, is likely unaware of its contents over the ensuing years.
Crypto Controversies in Congress
Plenty of controversies have rocked the crypto ecosystem, ranging from the FTX implosion to charges against Lindsay Lohan, Soulja Boy, and other celebrities. Not surprisingly, Congress members haven’t been immune to these controversies.
Former Representative, Madison Cawthorn, R-NC, was one of the most active crypto traders in the past, reporting about 30 transactions in Bitcoin, Ethereum, Solana, Krill, Cardano, ANKR token, and—the one that landed him in hot water—LGB token.
In December 2022, Cawthorn was ordered to pay over $14,000 to charity after the House Ethics Committee found he financially benefited while purchasing the LGB token that he was promoting and violated conflict of interest rules.
What’s Next?
Members of Congress have surprisingly little exposure to cryptocurrencies relative to the public. One could argue that their insider knowledge doesn’t benefit cryptocurrencies as it does individual stocks and most conventional funds don’t include exposure, so there’s no reason for many of them to own them.
That said, their actions seem to indicate that they are growing to understand the importance of crypto. Earlier this year, the Republican-sponsored Financial Innovation and Technology for the 21st Century Act passed in a bipartisan 279-136 vote despite an unusual warning from the Securities and Exchange Commission (SEC).
If it passes the Senate and executive branch, the bill will not consider contracts reported on a blockchain as securities. The SEC argues that this will deny investors protection under securities laws, while industry advocates believe that it would remove insurmountable hurdles that are killing innovation in today’s market.
Lobbyists also have a tremendous impact on the market. The industry’s $170 million super PAC, Fairshake, has supported many pro-crypto representatives in their bid to gain House seats. However, there’s internal disputes as to what politicians to support given the proximity of the upcoming Presidential election that could swing the Senate and executive branch.
Ultimately, the House of Representatives has little skin in the game now, but as crypto continues to gain importance (and perhaps makes it into more conventional investment portfolios) these dynamics could begin to change.
The Bottom Line
Americans are embracing cryptocurrencies more than ever, but Congressional engagement with digital assets remains limited. Despite these dynamics, the recent bipartisan support for crypto-related legislation suggests growing recognition of its significance. As the market evolves, it’s crucial for voters and investors to stay informed about their representatives’ crypto stance and involvement in the market.
If you trade crypto assets, ZenLedger can help you stay organized for tax time. Our platform automatically aggregates transactions across wallets and exchanges, computes your capital gains and losses, and generates the paperwork you need to file. You can even find opportunities to save with our tax-loss harvesting tools!
This material has been prepared for informational purposes only and should not be interpreted as professional advice. Please seek independent legal, financial, tax, or other advice specific to your particular situation.
