Analysis

Do Senator Lummis And Toomey Bitcoin Holdings Pose Ethical Concerns? Let’s Argue

It’s utterly authorized for U.S Senators Cynthia Lummis and Pat Toomey to personal Bitcoin or Bitcoin-related investments. They simply need to disclose it. Does this pose an moral dilemma? Senators are on the frontlines of policymaking, and the principles round cryptocurrencies are nonetheless being written. On the opposite hand, it’s illogical to assume that Senators can’t deal with cash or have investments. Is there a battle of curiosity right here? Let’s argue.

As a foundation, we’ll use and analyze this article, based on the “Wall Street Journal assessment of public monetary disclosures.”

How Much Bitcoin Do Lummis And Toomey Have?

Senator Cynthia Lummis is on the frontlines of the battle for higher laws round Bitcoin and cryptocurrencies basically. However, we’re centering our dialogue round her and Pat Toomey as a result of they’re actually the one Senators that disclosed Bitcoin-related investments. An unimaginable stat that reveals simply how early we’re. But sufficient about that, let’s go to the numbers.

Reportedly, Cynthia Lummis owns 5 complete BTC. Or, because the WSJ places it:

“Ms. Lummis’s roughly $250,000 of bitcoin makes her the most heavily invested U.S. lawmaker in the digital asset.”

For his half, Pat Toomey went for Bitcoin and Ethereum publicity by way of 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, by way of Instagram tales, Alexandria Ocasio-Cortez revealed that she’s not uncovered to cryptocurrencies in any method. “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 stated. And later added, “I want to do my job in the most ethical and impartial manner possible.” Does she have a degree?

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, although? Let’s give the Senators the proper to answer. 

BTCUSD price chart for 12/21/2021 - TradingView

BTC price chart for 12/21/2021 on Bitstamp | Source: BTC/USD on TradingView.com

How Do Lummis And Toomey Respond?

In a latest interview, Toomey stated, “Following that logic, then I guess no one in the Senate can invest in anything. That would be ridiculous.” Plus, let’s bear in mind, it’s utterly authorized to take action. In Lummis’ case, bear in mind 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 one other issue, and that is essential. The Senators additionally “say their experience with cryptocurrency gives them expertise on a subject that few on Capitol Hill have studied.” Can you perceive Bitcoin in case you’ve by no means used it? Don’t you want to be skilled in one thing to have the ability to make knowledgeable selections? If all the different Senators don’t have Bitcoin publicity or any expertise with this novel know-how, how can they be trusted to dictate coverage? 

It’s scary to assume that the folks deciding over what might grow to be the brand new paradigm, the evolution of cash, have by no means used the know-how and options it supplies. And that’s the opposite facet of this debate.

Featured Image: jensjunge on Pixabay | Charts by TradingView

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