Dave McCormick invests in bitcoin while serving on crypto oversight committee
U.S. Senator Dave McCormick, a Republican from Pennsylvania, has recently made investments in bitcoin while serving on the Senate Banking Committee amidst discussions on cryptocurrency regulation. Financial disclosure reports indicate that Senator McCormick put between $505,000 and $1.1 million into cryptocurrency purchases, along with investments in state or municipal bonds. Senate ethics guidelines mandate that senators disclose any transactions involving stocks, bonds, or securities within a 30-day window, providing only a range of values rather than exact amounts for each trade.
As a former CEO of Bridgewater, the world’s largest hedge fund, Senator McCormick made 15 trades between February and March, all involving purchases on Bitwise Bitcoin ETF, a managed cryptocurrency index fund. While some government ethics advocates have raised concerns about his investments, Senator McCormick’s team maintains that he is following the established rules and guidelines. The timing of his investments coincides with the Senate Banking Committee’s consideration of bipartisan legislation introduced in February aimed at establishing a regulatory framework for stablecoins, a form of cryptocurrency that is tied to backing assets like fiat currency or gold.
Known as the “Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act,” this legislation has garnered significant attention from bitcoin traders. It proposes that stablecoin issuers in the U.S. maintain reserves of U.S. dollars to stabilize the often volatile crypto market, among other regulatory changes. Senator McCormick, who is also a member of the Subcommittee on Digital Assets, participated in its first hearing in February, highlighting the potential benefits of stablecoins and blockchain technology as key innovations for the future. He emphasized the need for policymakers to create an environment that fosters innovation while safeguarding consumers.
However, Jordan Libowitz from Citizens for Responsibility and Ethics in Washington (CREW) expressed concerns about potential conflicts of interest given Senator McCormick’s investments and committee memberships. McCormick’s involvement with cryptocurrency investments aligns with a broader trend within the Republican Party, with President Donald Trump and former Senator Pat Toomey also engaging in similar activities. Critics of these practices have called for stricter regulations that prohibit legislators from trading securities altogether to avoid any perceived conflicts of interest.
Senator McCormick’s support for advancing cryptocurrency and blockchain technologies was a cornerstone of his campaign platform. In a March 2024 op-ed for the Washington Examiner, he underscored the importance of policymakers seizing the opportunity to lead in these innovative fields to prevent missing out on crucial advancements. As discussions on cryptocurrency regulation continue in the Senate, McCormick’s investments and involvement in the digital asset space will undoubtedly remain under close scrutiny as policymakers navigate the complexities of this rapidly evolving landscape.
