At least five members of the US Congress own cryptocurrencies. How much investment are we talking about?
In November, the crypto market surpassed the $3 trillion mark thanks to a large influx of new investors. Among them were many celebrities, including even US politicians. Despite the fact that some congressmen are quite negative about crypto, at least five of their colleagues own digital assets. So who are they and how much have they invested in coins? We tell you more about the situation.
As a reminder, the topic of cryptocurrencies in the Congress was actively debated last week. The occasion was a meeting attended by the most popular representatives of the niche. During the conversation, cryptocurrency enthusiasts, among others, explained the concept of blockchain and crypto to officials, with one of the latter’s jokes ending in the creation of a new cryptocurrency. Read more about this in a separate piece.
Which politicians have bought into cryptocurrencies?
The most popular name on the list of crypto-investor politicians is Senator Cynthia Lummis, known for her support of the industry. As a reminder, she has previously openly stated that she has crypto in her portfolio.
According to her declaration, Lummis owns up to $100,000 worth of bitcoins. This information was filed back at the beginning of the year, so the value of the senator’s crypto portfolio is clearly higher now. Lummis’ spokesperson Abegail Cave told Decrypt reporters that the senator has “done everything possible to comply with federal law and Senate ethics requirements regarding financial disclosure.”
Senator Cynthia Lummis
Another politician on the list – Jeff Van Drew – said he owned an investment trust worth up to $250,000 in Grayscale, meaning he bought units of the company that matched a certain amount of BTC or ETH. He was joined by House of Representatives member Jake Okincloss, who owns up to $15,000 worth of crypto.
Congressman Jeff Van Drew
Other cryptocurrency owners in Congress are Congressman Barry Moore with a $15,000 investment and Mary Newman. The latter has stated that her husband has traded Coinbase shares at least 16 times, including his recent $50,000 to $100,000 transaction. He has also invested up to $50,000 in Bitcoin trust Grayscale.
As a reminder, there are 535 members in total in Congress, which means it is notable that only five of them have declared that they own cryptocurrencies. This figure represents less than 1 per cent of the total number of congressional politicians, which is far lower than the general population. Recent surveys show that at least 10 per cent of Americans own crypto directly, while many others may own it in derivative forms, i.e. crypto derivatives.
Congressman Barry Moore
Unfortunately, there are also active opponents of innovation in the US Congress. Among them is Senator Elizabeth Warren, who has openly criticised Bitcoin and altcoins many times in the past. This time she has declared the “potential danger” of the decentralised finance (DeFi) sector and stabelcoins.
At a Senate Banking Committee hearing on Tuesday, Warren asked American University of Washington College of Law professor Hilary Allen whether the use of stablcoins could potentially endanger the United States financial system. While Allen said that the “massive” exchange of stabelcoins for conventional currency is unlikely to have “serious consequences” for traditional markets at this time, the DeFi sector is more likely to be severely affected.
Warren countered that because stabelcoins are “the lifeblood of the DeFi ecosystem” outside of regulated markets, she believed their value would “plummet precisely when people need stability the most.” Well that would supposedly affect traditional finance. Here’s the official’s quote.
Decentralised finance is the most dangerous part of the cryptocurrency world. There is virtually no regulation here. And unsurprisingly, this is where fraudsters pose as ordinary investors and traders. At DeFi, no one can tell if they are dealing with a terrorist.
Senator Elizabeth Warren
We believe that such radical statements have little to do with the reality of the situation. Yes, fraud in the DeFi sector is very much an issue, but it is unlikely to seriously undermine the crypto industry or even the financial system of the United States. After all, the cryptocurrency niche is small in and of itself compared to the overall economy and its large components, and few citizens have had time to learn about the world of coins. That's why we think that the only people who can fear the development of decentralised finance and blockchain in general are those who earn money by mediating transfers - for example, in banks.
What do you think about this? Share your opinion in our Millionaire Crypto Chat. There we will talk about other topics related to decentralisation and blockchain.
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