US House Committee Probes If Rep. Cawthorn Improperly Promoted Crypto
A House committee found “substantial evidence” that Rep. Madison Cawthorn, R-N.C., improperly promoted a cryptocurrency.
The U.S. House of Representatives Committee on Ethics said in its Tuesday (Dec. 6) report that Cawthorn had an undisclosed financial interest in the crypto that he promoted, that he failed to file timely reports to the House and that he purchased the crypto on more generous terms than were available to the general public.
“As the ISC [Investigative Subcommittee] Report notes, Members are widely recognizable public servants, and their participation in commercial endorsements or promotions may create the perception that they are making use of their official position for commercial gain,” the report said. “While cryptocurrency promotion, particularly of a ‘meme coin’ may be a novel issue before the Committee, whether a Member may promote an asset in which that Member has a financial interest is not a novel question.”
Cawthorn lost a primary election in May, and his term will end Jan. 3. Multiple media reports say he left his office in November.
PYMNTS was unable to reach Cawthorn for comment.
The ISC recommended in the report that Cawthorn be required to repay the value of the “improper gift” — the crypto that he purchased — and pay fees for his late filing of disclosures.
Specifically, the committee directed Cawthorn to repay $14,237.49 to an appropriate charitable organization and $1,000 to the U.S. Department of the Treasury.
“The ISC could not come to a consensus as to whether to recommend the committee reprove Representative Cawthorn in this matter,” the report said. “However, the ISC intended that its Report serve as an admonishment of Representative Cawthorn’s conduct.”
As PYMNTS reported May 23, the House began considering a probe of Cawthorn’s crypto dealings soon after he lost his primary to represent western North Carolina again.
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