Senator-elect Cynthia Lummis, a Republican from Wyoming, stands for a photo at the U.S. Capitol in Washington, DC, Nov. 9, 2020.
Stefani Reynolds | Swimming pool | Reuters
Senator Cynthia Lummis, R-Wyo., Just announced a sizable Bitcoin purchase as the crypto advocate further increased her stake in the volatile asset.
The Republican Senator looted the world’s largest cryptocurrency valued at between $ 50,001 and $ 100,000 on August 16, according to a filing on Thursday. The purchase was announced outside of the 45-day reporting period of The Stop Trading on Congressional Knowledge (STOCK) Act.
The congresswoman has long been a bitcoin bull and touts Wyoming as a leader in developing financial institutions to work with the crypto world. She previously told CNBC that she made her first Bitcoin purchase for $ 330 per token in 2013, and she said she owned five bitcoins at the end of June.
The STOCK Act of 2012 requires members of Congress to disclose purchases and sales of individual stocks, bonds, and commodity futures contracts within 45 days of the transaction. Other assets – such as mutual funds, EIFs, and T-bills – are exempt from the 45-day requirement and only need to be disclosed once a year. The different reporting schemes prioritize the disclosure of transactions that could be used to benefit from non-public information.
A spokesman for Lummis’ office told CNBC that the delay in disclosure was due to “a filing error”.
“When we realized that, we worked with the ethics committee to fix it,” the spokesman said. “It was an honest mistake and the problem was solved without penalty.”
The purchase came less than two weeks after Lummis and two other Senators tried to put an amendment to the Senate-passed infrastructure bill that would have restricted the definition of who qualifies as a cryptocurrency broker and shielded those who didn’t as brokers of regulation to qualify. But the change was ultimately blocked.
Bitcoin jumped to a nearly 5-month high of over $ 55,000 on Wednesday and was last trading at around $ 54,000. The rally takes place amid a series of small developments in Washington that have brought some comfort to institutional investors looking to get into cryptocurrencies.
Lummis’ bitcoin disclosure has drawn scrutiny before. In April of that year, she submitted her annual financial disclosure form to the Senate, but did not add the bitcoin. A week later, Lummis filed an amended disclosure that revealed that she owned Bitcoin valued at $ 100,000 to $ 250,000.
Lummis ‘new stake was one of the first congressional cryptocurrency purchases according to Quiver Quantitative, an alternative data company that tracks Senators’ trading activities.
The only other notable cryptocurrency bet came from Senator Pat Toomey, R-Penn., Who bought up to $ 15,000 from the Grayscale Ethereum Trust (ETH) and up to $ 15,000 from the Grayscale Bitcoin Trust (BTC) in mid-June, according to Quiver Quantitative Filing.
Lummis previously said she would like to see pension funds invest in bitcoin and other cryptocurrencies.
“I want cryptocurrencies like Bitcoin to be part of a diversified asset allocation that will be used in pension funds and other ways for people to save for the future,” Lummis said in a June interview with CNBC.
– CNBC’s Christina Wilkie contributed to the coverage.
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