U.S. Senator Dave McCormick (R-Pa.), who was elected to the Senate this past January, recently disclosed his substantial early investments in bitcoin. This disclosure has the government ethics community up in arms. Yet McCormick’s investments aren’t just striking — they’re perfectly in line with his role on the Senate Banking Committee. As a member of the new House Subcommittee on Digital Assets, Rep.
According to McCormick’s financial disclosures, this translates to between $505,000 and $1.1 million in crypto buys. He used as a prime example the Bitwise Bitcoin ETF, which is an actively managed cryptocurrency index fund. He registered 15 different trades from the middle of February to the end of March. His significant investments in cryptocurrencies have raised questions about potential conflicts of interest since he has been tasked with crafting new regulations for cryptocurrency.
McCormick’s team insists that, in all of his investments, he is following the rules and regulations that apply, and not taking any advantage. McCormick, a former Bridgewater CEO, now heads the world’s largest hedge fund. His approach is a loss, because he brings an amazing depth of financial knowledge to the Senate.
"You never want to be in a position where you're questioning whether your senators are acting in the best interest of their constituents or their own bank account, and he is now in a unique position to help his own personal interests." - Jordan Libowitz
During a hearing, McCormick highlighted digital assets and blockchain as the "next big wave" of technological innovation, underscoring his positive outlook on the industry's potential. Then, his own op-ed in March 2024 reinforced that decision.
McCormick campaigned on progressing cryptocurrency and blockchain, aligning himself with a broader trend of Republicans embracing cryptocurrency. He has repeatedly told Congress that the industry needs balanced regulation.
"offer America the chance to lead another generation of critical innovation, but policymakers must do their part, or this opportunity will slip away." - McCormick
McCormick’s bitcoin investments signal a broader trend of Republicans jumping on the cryptocurrency bandwagon. Supporters read his participation as a hopeful sign of growing engagement from lawmakers on the digital asset space. On the other side, critics insist that his investments pose a huge potential conflict of interest.
"It's our job as policymakers to create an environment where that innovation can thrive, while at the same time protecting consumers along the way." - McCormick
McCormick's bitcoin investments are part of a larger trend of Republicans embracing cryptocurrency. While supporters see his involvement as a sign that policymakers are becoming more engaged with the digital asset space, critics argue that his investments create a potential conflict of interest.
