The political climate in the United States has not revolved around finance for a long time now. With the advent of cryptocurrencies, many questions came up that were previously either ignored or shoved under the rug. One such question pertains to politicians trading equities, more simply, the impact of lawmakers in the stock market. The argument stems from the assumption that human beings are susceptible to corruption. When a lawmaker buys stocks of a company, he or she will be capable of missing official power to favor policies that support the given companies. Not only will it be unfair in an open economy, but it would also qualify as a corruption of the highest order. While many have raised this question, lawmakers were always allowed to participate in the stock market. Now a team of 27 representatives wants to change it.
Illinois congressperson Bill Foster and 26 other congress members wrote a letter to Speaker Nancy Pelosi and Kevin McCarthy about the same. They demanded a law that would prohibit members of the house from participating in the stock exchange. If the proposal gains traction, it would also have huge repercussions for the crypto world. Very few politicians have publicly supported cryptocurrencies. Stocks, on the other hand, have always been an investment instrument of choice. The absence of lawmakers in the crypto space can lead to difficult times for the market, which is already suffering from huge losses. However, there has been no conclusive statement from any party about this development and it will likely take a long time to come.