Following a change in leadership in the United States Congress, the 118th Congress may decide to pursue an initiative to ban members of Congress from investing in stocks or cryptocurrencies. This is an idea that has garnered support from a significant number of legislators on both sides of the political spectrum in the United States.

Based on the results of the 2022 Midterm Elections, Republicans will achieve a narrow majority in the House of Representatives and assume control of the chamber. On the other hand, the Democrats will still have a majority in the Senate when the new session of Congress begins on January 3.

According to a January 2022 report, Kevin McCarthy, a Republican representative who is running for the next House speaker, said he would consider an outright ban on lawmakers owning and trading stock if his party gains control of the house. Camera. This is a move that could presumably be extended to cryptocurrency.

It is unknown whether or not McCarthy has the necessary votes to take the lead of the House of Representatives, a process that will most likely begin on January 3.

On the other hand, many people have referred to the fact that elected officials are allowed to trade and hold certain assets while in office as a potential conflict of interest.

According to reports, 77 members of Congress failed to comply with the disclosure requirements of the Stop Trading on Congressional Knowledge Act, or STOCK Act, which was initially enacted in 2012 and is currently in its 117th session.

Although these violations included delayed reporting of permitted transactions, members were empowered to address legislation on issues that may have been affected by their personal interests.

The ranking member of the Senate Banking Committee, Senator Pat Toomey, has also previously disclosed Ether and Bitcoin purchases, but will leave office in 2023.

The close financial relationships that existed between various US legislators and prominent business figures were at the center of the biggest issues surrounding the cryptocurrency industry in 2022.

Executives at cryptocurrency exchange FTX, including the company’s former CEO Sam Bankman-Fried, have contributed politicians and campaigns for both Republicans and Democrats. As a result of this action, many people within the industry questioned the objectivity of lawmakers during hearings to investigate the company’s collapse.

In September, Zoe Lofgren, chair of the House Committee on Administration, presented a framework to lawmakers seeking to change the STOCK Act to bar members of Congress and the Supreme Court, as well as their spouses and children subsidiaries, “dealing in shares or holding investments in securities, commodities, futures, cryptocurrencies and other similar investments.” This would also apply to members of the Supreme Court. Lofgren’s proposal was made by the chairman of the House Administration Committee.

No action was taken on the planned policy change in 2022; however, the Federal Open Market Committee established identical restrictions that prohibit senior Federal Reserve officials from acquiring and holding cryptocurrency.