- Representative Madison Cawthorn is already facing a complaint of ethics for past cryptographic transactions.
- Cawthorn appears to have again violated the disclosure provisions of the STOCK Act.
- Congress is actively debating whether to limit or prohibit lawmakers from conducting certain financial transactions.
Republican Rep. Madison Cawthorn of North Carolina appears to have again violated a federal conflict of interest law by failing to properly report the purchases and sales of six types of cryptocurrencies, according to a new congressional financial disclosure.
The reported value of Cawthorn’s recently released cryptocurrency exchanges is between $ 290,000 and $ 950,000, according to its release, which it presented to the U.S. House of Representatives on Wednesday morning.
Cawthorn reported that his exchanges took place between January and March. By federal law, he had no more than 45 days to publicly disclose them in a certified document submitted to Congress.
The value of your newly reported cryptographic exchanges is:
- Kryll, $ 116,000 to $ 265,000
- Ethereum, from $ 61,000 to $ 215,000
- Solana, $ 48,000 to $ 195,000
- Bitcoin, from $ 47,000 to $ 180,000
- Let’s Go Brandon Coin, $ 15,000 to $ 50,000
- Application, $ 3,000 to $ 45,000
Lawmakers are only required to report the value of such financial transactions at wide intervals.
Cawthorn also reported on Wednesday that it was investing between $ 100,000 and $ 250,000 in a decidedly conservative fund: the SPDR S&P 500 ETF, which tracks the performance of the S&P 500 benchmark index. .
The Cawthorn Congress office did not immediately respond to a request for comment.
Multiple scandals for Cawthorn
Cawthorn’s new disclosures make up for the existing financial disclosure issues he faces.
Insider previously reported that the young congressman, who lost his seat last month to a major rival, revealed in late May that he had bought up to $ 250,000 in “Let’s Go Brandon” currency on December 21, 2021.
On December 31, it sold part of its stake in the currency, at least $ 100,001, but still held part. He reported the transaction about four months ago when the disclosure was due.
While it is not illegal for Cawthorn to buy or sell cryptocurrencies, he reported each of the transactions more than six months after they were made, well above the limit required by the 2012 Stop Trading Act on Congressional Knowledge, or STOCK Act.
The law designed to defend against conflicts of interest and curb insider trading.
“All requests for financial disclosure must disclose virtual currency ownership interest” worth more than $ 1,000, as well as “purchases, sales, or cryptocurrency exchanges,” the House Ethics Committee wrote in a 2018 memorandum to lawmakers and congressional officials.
Under Congressional rules, Cawthorn could face a minimum fine of $ 200, but the House Ethics Committee could grant him an exemption that would acquit him of the fine.
The House Ethics Committee announced last month that it has formed a sub-panel to partially investigate Cawthorn’s financial operations.
Insider’s “Conflicted Congress” project and other media outlets have identified 63 members of Congress since last year who violated the STOCK Act. At least 182 senior congressional officials also violated the STOCK Act’s disclosure provisions.
Insider also found numerous examples of conflicts of interest between federal lawmakers, both Democrats and Republicans.
News of the “Let’s Go Brandon” coin purchase (the virtual currency is named after an insult to President Joe Biden) was originally published in the Washington Examiner, which reported that Cawthorn may be in violation of inside information laws. If true, such a crime would be a matter for the Department of Justice and the Securities and Exchange Commission to investigate.
Cawthorn faced numerous controversies during his short time in office that angered the Republican leadership. In April, officers cited him for carrying a 9-millimeter-loaded pistol inside Charlotte Douglas International Airport.
In February 2021 he was summoned, but not charged, for attempting to carry a weapon to a plane in his hand luggage at Asheville Regional Airport.
House minority leader Kevin McCarthy publicly blamed Cawthorn after he said in a podcast that he had seen Washington Republicans use cocaine and asked him to participate in an orgy.
Cawthorn lost his re-election last month in a Republican primary. North Carolina State Senator Chuck Edwards defeated Cawthorn.