Congressional trading activity peaked during the US tariff uncertainty at March-end as Congress members, including Marjorie Taylor Greene, made significant stock trades and happened to make markable profits in a matter of days. Although public outcry over banning such trades continues to gain momentum, the latest disclosures revealed that some Congress members went beyond stocks to profit from the cryptocurrency industry during the market crisis, which has fewer regulations than US equities.
Republican US Senator from Pennsylvania, David McCormick's trading activity on Quiver Quantitative shows he mostly picks low-risk investment instruments, but that pattern changed drastically since February.
He invested up to £744,435 ($1 million) into Bitcoin via the Bitwise Bitcoin exchange-traded fund (ETF) when the price dipped and stayed muted between 25th February and 27th March. His crypto portfolio has already reaped double-digit profits and is on the way up, as BTC prices appeared to have embarked on another rally since 20th April. Bitcoin prices are up over 15% in the past one month and are currently testing levels as high as £70,721 ($95,000).
McCormick is a Former Hedge Fund CEO
McCormick is a former US Army officer and was also the CEO of Bridgewater Associates, one of the top hedge funds in the world, founded by billionaire investor Ray Dalio.
McCormick's investment pattern since 2024 shows that he follows a different approach than other Congress members who trade stocks, preferring low-risk investment instruments. He hasn't attracted accusations of insider trading like Nancy Pelosi or Greene. However, the US President's heavy engagement with the crypto community and the launch of his official token, which tanked days after launch, sparked debates about political figures capitalising on the lack of crypto regulations amid tremendous signs of market manipulation.
Trump seeks the widespread adoption of cryptocurrency and is spearheading regulations to prevent incidents of 'rug pulls' and 'pump-and-dump.' Until robust rules are in force, a growing number of Bitcoin investors and traders face high risks of losing money, not only to market fluctuations but to scams and frauds.
Furthermore, many economists and analysts are finding evidence of Bitcoin's growing correlation with the stock market despite the token being dubbed as digital gold. It means similar price patterns are emerging in stocks and Bitcoin when markets are rocked by unexpected news like the tariff crisis or looming doubts over the US Federal Reserve's autonomy.
McCormick is among many Congress members who invested heavily during the ongoing market turmoil since late February, precisely on 25th February, when both the S&P 500 and Bitcoin started declining and failed to stabilise.
The PELOSI Act Gaining Momentum
Senator Josh Hawley recently reintroduced the PELOSI Act, which would ban lawmakers and their spouses from buying and selling individual stocks while in office. The bill has gained support from both parties. The proposed law imposes a civil fine on unlawful trades and mandates that violators forfeit profits to the US Treasury.
However, the legislation doesn't stop lawmakers from investing in diversified mutual funds, ETFs, or US Treasury bonds. Moreover, Bitcoin is not considered a security, which keeps it exempt from this Act. Hence, representatives with vital market information have leeway to time investments in the token and amass profits, which would be impossible otherwise.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.
