Crypto Acquisition Scandal Shakes GOP: Lawmaker Accused of Illegally Obtaining Digital Assets



A recent report from Raw Story sheds light on a Republican congressman who allegedly violated a federal financial disclosure law by failing to report two cryptocurrency purchases within the required time frame. The congressman in question, Rep. Mike Collins (R-GA), reportedly purchased Ethereum (ETH) on October 9 and November 5. However, Collins did not reveal them publicly until December 22, long after the deadline set 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 improve transparency in Congress. Requires members of Congress to publicly report most purchases, sales and trades of stocks, bonds, commodity futures, securities and cryptocurrencies within 45 days. Failure to comply with these disclosure requirements may result in sanctions. According to Raw Story reporting, Rep. Collins revealed his two Ethereum purchases, each valued between $1,001 and $15,000, on December 22. This was well beyond the mandatory disclosure deadline. The report also highlights that other lawmakers, including Senator Angus King (I-ME), delayed their cryptocurrency disclosures, albeit for a shorter period. The report notes that violating the STOCK Act carries a standard fine of $200. However, he further highlights that several bipartisan bills have been introduced, such as the Ending Congressional Stock Trading and Holdings (ETHICS) Act and the Government Officials Stock Trading Prohibition Act, which aims to prohibit congressional stock trading and strengthen ethics regulations. 39 Members of Congress Accused of Violating the STOCK Act Raw Story’s investigation identified at least 39 members of the 118th Congress, including Representative Collins and Senator King, who allegedly violated the STOCK Act. Additionally, the report flags other lawmakers whose investments in stocks and cryptocurrencies may pose potential conflicts of interest with their committee appointments. Some of the lawmakers mentioned include Senators Tommy Tuberville (R-AL), Markwayne Mullin (R-OK), and Representatives 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, penalties or fines of up to $200 imposed on members of Congress for violating the STOCK Act pale in comparison to the lawsuits or subpoenas faced by exchanges, clients, or crypto companies that violate federal laws. This stark disparity highlights a significant discrepancy between the treatment of members of Congress and individuals or entities within the nascent crypto industry. The daily chart shows the recovery of ETH in the last 24 hours. Source: ETHUSDT on TradingView.com At the time of writing, the price of ETH stands at $2,250. It has shown a recovery with a gain of 2.3% in the last 24 hours after a drop towards the $2,100 level on Wednesday. Featured image from Shutterstock, chart from TradingView.com

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