U.S. Senator Ted Cruz buys Bitcoin on dips amid market correction

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Recent U.S. Senate financial disclosures show that U.S. Republican Senator Ted Cruz of Texas bought bitcoin on dips in January amid a market correction. According to a financial disclosure statement filed on Feb. 4, Ted Cruz purchased $15,000 worth of currency through cryptocurrency broker River on Jan. 25.

Recent U.S. Senate financial disclosures show that U.S. Republican Senator Ted Cruz of Texas bought bitcoin on dips in January amid a market correction.

Ted Cruz purchased between $15,000 and $50,000 worth of bitcoin on Jan. 25 through cryptocurrency broker River, according to a financial disclosure statement filed Feb. 4.

Ted Cruz’s buying came as bitcoin traded at $36,000 and $37,000 from a high of $69,000 in November, as the sell-off sparked fears of crypto winter. The last time this happened was in late 2017, early 2018 when Bitcoin fell 80% from its all-time high.

However, Bitcoin has now traded back around $41,500 since last week’s rally. Assuming Ted Cruz doesn't sell his holdings and incur any short-term capital gains taxes, his current profit is estimated to be between $2,000 and $6,850.

In recent months, Ted Cruz has also been physically supporting Bitcoin as Texas strives to become a Bitcoin mining hub.

He had publicly opposed provisions in a bipartisan Senate bill last August that would include tax rules for cryptocurrency trading firms and brokers. Then in November, Ted Cruz introduced a resolution aimed at allowing food vendors and other merchants serving Congress to accept cryptocurrency as a form of payment.

River Financial holds licenses in many states in the United States but does not indicate on its official website that it has been issued a Texas money transfer agency license. However, according to the Texas Department of Banking guidelines on virtual currencies, exchange transactions between virtual currencies and sovereign currencies in the state do not require a currency exchange license.

In addition to Ted Cruz, members of Congress like Rep. Jake Auchincloss, D-Mass., Rep. Marie Newman, D-Illinois, Rep. Jeff VanDrew, R-NJ, and Rep. Barry Moore, R-Alabama, have disclosed cryptocurrencies or related stock holdings.