Do Senator Lummis & Toomey’s Bitcoin Holdings Pose Ethical Concerns? Let’s Argue
December 21 2021 - 12:23AM
NEWSBTC
It’s completely legal for U.S Senators Cynthia Lummis and Pat
Toomey to own Bitcoin or crypto-related investments. They just have
to disclose it. Does this pose an ethical dilemma? Senators are on
the frontlines of policymaking, and the rules around
cryptocurrencies are still being written. On the other hand, it’s
illogical to think that Senators can’t handle money or have
investments. And that’s what cryptocurrencies are. Is there a
conflict of interest here? Let’s argue. As a basis, we’ll use and
analyze this article, based on the “Wall Street Journal review of
public financial disclosures.” How Much Bitcoin Do Lummis And
Toomey Have? Senator Cynthia Lummis is on the frontlines of the
battle for better legislation around Bitcoin and cryptocurrencies
in general. However, we’re centering our discussion around her and
Pat Toomey because they’re literally the only Senators that
disclosed crypto-related investments. An incredible stat that shows
just how early we are. But enough about that, let’s go to the
numbers. Reportedly, Cynthia Lummis owns 5 whole BTC. Or, as the
WSJ puts it: “Ms. Lummis’s roughly $250,000 of bitcoin makes her
the most heavily invested U.S. lawmaker in the digital asset.” For
his part, Pat Toomey went for Bitcoin and Ethereum exposure via
Grayscale: “In mid-June, Mr. Toomey bought $2,000 to $30,000 of
stock in Grayscale Bitcoin Trust and Grayscale Ethereum Trust,
investment vehicles that seek to track the coins’ prices. He said
the holdings are part of a diverse portfolio.” So far, so good.
However… What Ethical Concerns Are There? Recently, via Instagram
stories, Alexandria Ocasio-Cortez revealed that she’s not exposed
to cryptocurrencies in any way. “I don’t think members of Congress
should own / trade individual stocks and I choose not to own any so
that I can remain impartial in policymaking,” she said. And later
added, “I want to do my job in the most ethical and impartial
manner possible.” Does she have a point? Back to the article, let’s
quote Lee Reiners, “executive director of the Global Financial
Markets Center at Duke University and a former official at the
Federal Reserve Bank of New York.” “These two senators are the most
vocal when it comes to favorable cryptocurrency regulation. It’s
not to say they are motivated by personal financial interest, but
it’s fair to question their advocacy. It’s problematic given their
holdings.” But, is it problematic, though? Let’s give the Senators
the right to reply. BTC price chart for 12/21/2021 on
Bitstamp | Source: BTC/USD on TradingView.com How Do Lummis And
Toomey Respond? In a recent interview, Toomey said, “Following that
logic, then I guess no one in the Senate can invest in anything.
That would be ridiculous.” Plus, let’s remember, it’s completely
legal for them to do so. In Lummis’ case, take into account that
“her bitcoin is part of a broad portfolio that includes her
family’s cattle ranches.” The WSJ quotes her: “Somebody said, ‘She
should sell her bitcoin.’ It’s like, well, OK, it’s a commodity.
Should I also sell my cows? Should I sell my mutual funds? Should I
sell my retirement fund, just because it might be invested in
something that is a great store of value?” There’s another factor,
and this is crucial. The Senators also “say their experience with
cryptocurrency gives them expertise on a subject that few on
Capitol Hill have studied.” Can you understand Bitcoin if you’ve
never used it? Don’t you need to be experienced in something to be
able to make informed decisions? If all of the other Senators don’t
have cryptocurrency exposure or any experience with this novel
technology, how can they be trusted to dictate policy? It’s
scary to think that the people deciding over what could become the
new paradigm, the evolution of money, have never used the
technology and solutions it provides. And that’s the other side of
this debate. Featured Image: jensjunge on Pixabay | Charts by
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