Is Crypto Booster Ted Cruz Violating Disclosure Laws?
Bitcoin makes Senator Ted Cruz’s eye twinkle.
The Republican from Texas on Wednesday spoke at the Bitcoin Policy Summit in Washington, DC, and spoke about his optimism for Bitcoin and the crypto sector in general,
Cruz got so pumped that he even revealed his personal Bitcoin holdings, sharing that he has a standing buy order that allows him to acquire Bitcoin weekly. “I’m a Bitcoin investor personally. I have a standing buy order. Every Monday morning I have a buy of Bitcoin that comes in…I own a little more than 2 BTC.”
The revelation at the event, as crypto researcher Molly White pointed out on Twitter, was much more than Cruz has legally filed under the Senate’s STOCK Act disclosures. Cruz has not disclosed purchases since January 2022, and at the time, he had somewhere between 0.4 and 1.4 BTC in personal holdings.
White identified four possibilities following Cruz’s revelation: “1) He’s not been filing his disclosures, 2) He’s lying to play to his Bitcoiner audience, 3) He bought the remaining 0.6–1.6 BTC ($17,400 – $46,400) within the last thirty days, and set up the repeat buy order within that window, and 4) He’s buying <$1,000 in BTC each week. As I understand it the STOCK Act only requires a Periodic Transaction Report of purchases >$1,000.”
It’s likely the possibility number 4, considering the rule, as White points out, doesn’t really have a limit on how often you buy, as long as it’s under $1,000. Under the STOCK Act, Senators are required to file annual disclosures, but Cruz has requested an extension that won’t require him to file his disclosures until the middle of August.
But, even if it’s possibility #1, Cruz, and any other member of the US Congress who fails to file their disclosures, would only be fined a measly $200. The STOCK Act, or the Stop Trading on Congressional Knowledge Act of 2012, was enacted to prevent lawmakers like Ted Cruz and Nancy Pelosi from insider trading using nonpublic information they receive as government officials.
Cruz has been known to use his position to promote crypto. In January Cruz introduced a resolution that would require the Architect of the Capitol, the Secretary of the Senate, and the Chief Administrative Officer of the House of Representatives to work only with food service contractors and vending machine operators that accept crypto payments in the Capitol complex in Washington.
Information for this story was found via Molly White on Twitter, CNBC, Coindesk, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
