The "Cryptocurrency President" Donald Trump is facing a new ethical crossroads: Should he prevent U.S. lawmakers from trading cryptocurrencies like he once supported a ban on stock trading? As the cryptocurrency market rapidly grows into a multi-trillion dollar industry, allowing lawmakers to participate raises concerns about giving the key to the vault to those who are making the rules.
Cryptocurrency and Congressional Trading: The Hidden Risks of Conflicts of Interest
Banning members of Congress from trading stocks has long been a hot topic in American politics. Current President Joe Biden has publicly stated that lawmakers should not profit from markets they are able to influence. Polls show that about 75% of Americans support this view. However, the uniqueness of cryptocurrency complicates this issue further. Compared to the stock market, cryptocurrency is a decentralized, global, and highly volatile asset; it is not just an economic tool but also a revolution of technology and ideology. Can Trump make a decision to ban trading in cryptocurrencies similar to that of stock trading in this unprecedented market?
Trump and Cryptocurrency: From Supporter to Potential Conflict Creator
Trump's political stance in Washington has always attracted attention, and his attitude towards cryptocurrencies, especially Bitcoin, seems to make him an unexpected spokesperson in this field. He supports stopping the government from selling Bitcoin and tends to appoint pro-cryptocurrency regulators, which has gained him some support among blockchain enthusiasts. However, behind these positions lie a series of potential ethical dilemmas: Has Trump personally invested in the cryptocurrency market? His cryptocurrency holdings and relationships with industry figures may influence his decision-making in the regulatory field.
Former White House ethics lawyer Richard Painter has expressed concerns that Trump's business interests might influence his regulatory stance on cryptocurrencies. "As his business empire continues to expand, the risk of conflicts of interest also increases," he said. Although the lenient policies of the Trump administration towards cryptocurrencies may be beneficial for the market, their transparency and fairness in regulation are questionable. Columbia Law School professor John Coffee further pointed out that the Trump administration may choose to adopt more lenient enforcement measures for cryptocurrency companies, which would allow lawmakers to profit from the rules they set, creating a clear conflict of interest.
Lawmakers Trading Cryptocurrency: The Fog and Challenges of the Ethics Bill
The "Ethics Bill" has long proposed to prohibit members of Congress and their families from trading in any markets they can influence, but this proposal has yet to become law. Even if this bill were passed, the difficulty of enforcement should not be underestimated. The rapid development of cryptocurrency has made its regulatory rules asymmetrical compared to traditional stock markets. Unlike stocks, cryptocurrencies are not regulated by traditional financial markets, and their decentralized nature complicates regulation further.
If members of Congress are prohibited from trading cryptocurrencies, it could severely disrupt the market, but if they are allowed to trade, it could lead to even greater moral hazards. Especially in the current context, where the public is increasingly sensitive to the profit-seeking behavior of lawmakers, such conflicts of interest could further undermine the credibility of Congress.
Global Perspective: Responses from Other Countries
It is worth noting that many other countries have started to address this issue. In the UK, lawmakers must disclose all financial interests, including cryptocurrency holdings; Canada's Conflict of Interest Act also requires public officials to be transparent about their financial interests; Australia requires lawmakers to publicly disclose their cryptocurrency investments to avoid potential scandals. In Germany, while lawmakers have been given greater freedom, there are increasing calls for tightening related rules. Compared to these countries, the rules in the United States appear vague and enforcement is particularly weak.
Although cryptocurrency is still a relatively emerging field, lawmakers who hold cryptocurrencies may draft more informed and fair policies due to their understanding of the area. However, cryptocurrencies also represent financial freedom, and excessive restrictions could send unfavorable signals and even harm the development of this industry.
Future Concerns and Possible Choices for Trump
So, will Trump ban members of Congress from trading cryptocurrencies as he did with stock trading? The answer may be surprising—unlikely. Trump understands the importance of business interests and has expressed interest in making money on multiple occasions. Therefore, he may choose to retain the freedom for Congress to trade cryptocurrencies; after all, giving up the potential of this market is not an easy choice for him.
In this game of ethics and interests, Trump's choice may already have an answer. But for us ordinary investors, maintaining clear judgment and rational investment thinking is always the best strategy when facing a volatile market. Want to delve into the rules and trends behind cryptocurrency? You might want to follow Mr. Qiu to explore the deeper issues behind the market. After all, the real winners are those who continually draw wisdom from the market.
