Cryptomania has gripped many countries in the world, especially the USA. However, reports of scams and hacking in cryptosphere are worrying the whole financial world. Besides misuse of cryptocurrencies in illegal activities like money laundering, narcotic trade and terror activities, unexplained collapse of few cryptocurrencies like Luna has woken up the world to go fast in the direction of framing regulations with regard to cryptocurrencies.
US Federal Reserve Governor Christopher J. Waller recently observed perspicaciously that regulations on Cryptocurrencies are needed to generate confidence among people especially those who have chosen not to invest in cryptocurrencies.
However, framing regulations is the sole prerogative of legislators, congress members, in case of USA. But, what happens to confidence building mission when some legislators themselves have made investments in cryptocurrercies. There will be issues conflict of interest in such a situation.
Now, two members of US Congress namely Elissa Slotkin, a Democratic Representative from Michigan, and Dusty Johnson, a Republican Representative from South Dakota have joined hands to force other members of the Congress to disclose investments made by them or their family members in any crypto-assets.
Elissa Slotkin has introduced the bill titled as Crypto Accountability Act on May 20th, which has been co-sponsored by Dusty Johnson. If the Act is passed by the Congress, then it will be mandatory for members of the Congress to disclose “purchase, sale, or exchange in cryptocurrency by the Member or spouse or dependent child of the Member during the preceding calendar year which exceeds $1,000.”
As per the Bill, if any Member of Congress who fails to file or report, a fine of $500 will be imposed or 5% of the value of sale, purchase etc. Besides that if any member files a false report about his or her sale, purchase etc, then Attorney General can bring a civil action against such member for penalty of $66,000 or 5% of the value of sale, purchase etc.
It may be noted that as per a report in Bloomberg, at least 21 members of Congress or their immediate family members traded cryptocurrencies or crypto related products. The report further quotes Richard Painter, former Chief White House ethics lawyer and University of Minnesota law professor saying, “ This is going to undermine public confidence in the crypto market.”
