Senator Dave McCormick has invested between $505,000 and $1.1 million in bitcoin while serving on the Senate Banking Committee which is discussing cryptocurrency legislation. His investments are viewed with suspicion by ethics advocates, citing potential conflicts of interest. Meanwhile, bipartisan legislation on stablecoins is under consideration, pushing for a regulatory framework to ensure stability in a notoriously volatile market.
U.S. Senator Dave McCormick, a Pennsylvania Republican and member of the Senate Banking Committee, has recently made headlines for investing in bitcoin while the committee deliberates on cryptocurrency regulations. Financial disclosure reports indicate that McCormick has spent between $505,000 to upwards of $1.1 million on various crypto purchases. While he also invested millions in state or municipal bonds, the exact figures aren’t disclosed, as the Senate’s ethics guidelines only require a value range for trades.
McCormick, previously the CEO of the world’s largest hedge fund, logged a total of 15 trades from February through March, all linked to the Bitwise Bitcoin ETF, a managed cryptocurrency index fund. The senator has his investments scrutinised, but his spokesperson maintains that all actions comply with the required Senate rules. They stated, “Senator McCormick’s investments are consistent with Senate ethics rules and financial disclosure requirements.”
The timing of McCormick’s investments coincides with the Senate Banking, Housing, and Urban Affairs Committee contemplating bipartisan legislation. This proposed bill, named the “Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act,” aims to create a regulatory framework for stablecoins. These cryptocurrencies are pegged to hard assets like gold or fiat currency and represent a significant but often volatile segment of the digital currency landscape.
The GENIUS Act seeks to ensure that issuers of stablecoins maintain reserves of U.S. dollars and includes other regulatory measures aimed at stabilising the crypto market. Notably, McCormick also participates in the Subcommittee on Digital Assets. His inquiries during a recent hearing highlighted the potential benefits of stablecoins and digital assets, which he claimed could constitute the “next big wave” of technological advancement.
In the hearing, he expressed that lawmakers must foster an environment conducive to innovation while also safeguarding consumer interests: “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.”
Critics, however, have raised concerns regarding McCormick’s investments. Jordan Libowitz, a vice president at Citizens for Responsibility and Ethics in Washington, labelled Senate ethics rules as insufficient, especially given McCormick’s roles on both the banking and digital asset committees. He added that it creates lingering doubts about whether senators are prioritising constituents’ needs or their financial gains. Libowitz said: “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.”
This situation aligns with a broader trend among Republican legislators who are increasingly embracing cryptocurrencies. Former President Donald Trump, for instance, established a working group on digital assets early in his administration and has even launched his own “meme” coin. Previous concerns have also surfaced regarding former U.S. Senator Pat Toomey and his bitcoin dealings, prompting some calls within Congress to restrict legislators from trading in securities entirely.
Since taking office in January, McCormick’s stance has been pro-cryptocurrency and blockchain. In a March 2024 op-ed for the Washington Examiner, he argued that these technologies represent a crucial opportunity for America to lead in innovation, warning that without proactive policymaking, the moment could easily be lost.
