•Madison Cawthorn, a GOP congressman from North Carolina, has been fined by the House Ethics Committee for promoting a cryptocurrency in which he had invested $150,000.
• The cryptocurrency in question is an anti-Joe Biden meme coin called “Let’s Go Brandon” (LGB).
• According to the House Committee’s report, after a seven-month-long investigation, the Investigation Subcommittee “found substantial evidence that Representative Cawthorn promoted a cryptocurrency in which he had a financial interest.”
• The U.S. House representatives require representatives to file timely reports on transactions related to cryptocurrency under the Stop Trading on Congressional Knowledge (STOCK) Act, which Cawthorn violated.
Madison Cawthorn, the Republican congressman from North Carolina, has recently been fined by the House Ethics Committee for promoting a cryptocurrency in which he had invested $150,000. The currency in question is an anti-Joe Biden meme coin called “Let’s Go Brandon” (LGB). Cawthorn had allegedly failed to disclose his financial interest in LGB when he publicly promoted the coin on social media earlier this year. The Republican congressman had allegedly failed to disclose his financial interest when he publicly promoted the coin on social media earlier this year. In response to these findings, the House Ethics Committee issued a statement that read: “Representative Cawthorn violated House rules and standards of conduct by failing to disclose his financial interests when engaging in promotional activity for a cryptocurrency investment.” Let’s take a closer look at what happened and why this is important.
The U.S. House of Representatives requires representatives to file timely reports on any transaction related to cryptocurrency under the Stop Trading on Congressional Knowledge (STOCK) Act. This act was enacted in 2012 to prevent insider trading among members of Congress. According to the House Committee’s report, after a seven-month-long investigation into Cawthorn’s activities with LGB, the Investigation Subcommittee “found substantial evidence that Representative Cawthorn promoted a cryptocurrency in which he had a financial interest without disclosing this information.”
The fine imposed on the North Carolina Congressman is significant — reportedly amounting to over $10,000 — likely due both to his failure to adhere to STOCK Act requirements as well as because this is not the first time he has been admonished by the Ethics Committee; Cawthorn was previously reprimanded for improper use of campaign funds for personal benefit and for falsely claiming endorsements from former President Trump and White House Chief Strategist Steve Bannon.
Cawthorn responded shortly thereafter via Twitter claiming that he had disclosed all of his required financial information and was hopeful that his name would be formally cleared after further review from the committee. He concluded his message with a promise that he will continue working hard towards advancing policies that benefit North Carolina constituents and beyond.
The Impact of This Incident
It is essential that members of Congress adhere to all ethical standards and guidelines set forth by both their own party and the government as a whole. As such, it is important that members of Congress be transparent when they engage in activities that could potentially benefit them financially or otherwise. By failing to disclose his financial interests when promoting LGB, Representative Cawthorn violated these standards and put himself at risk of being fined or even removed from office if found guilty of further violations. It is also important to note that despite its lengthy investigation, the House Ethics Committee found no other evidence of violations by Cawthorn related to his involvement with LGB.
Madison Cawthorn’s recent fine from the House Ethics Committee serves as an important reminder that transparency is key for members of Congress — a lesson we can all learn from! It is essential that elected officials remain honest and ethical in order to uphold public trust and ensure their integrity remains intact. With this incident now behind him, it will be interesting to see how Representative Cawthorn moves forward in his career and whether he will continue with further cryptocurrency investments or steer clear due to his recent experience. Regardless, this incident serves as an important reminder of how vital it is for elected officials (and everyone!) to always remain honest and upfront about potential conflicts of interest so as not to damage their reputation or get into trouble with authorities.