In a recent statement, several members of the House have expressed their concerns regarding a potential violation of federal guidelines due to the US Special Envoy’s unresolved financial ties to cryptocurrency investments.
Congressional Scrutiny on Envoy’s Crypto Investments
On Thursday, a group of House Democrats, spearheaded by Representative Elizabeth Warren, challenged US Special Envoy for international peace, Jamie Carter, about his ongoing investments in digital currencies and their connection to leading stakeholders in the crypto world.
In a letter issued to the press, the lawmakers raised alarms about a possible conflict of interest. Carter’s recent financial disclosure revealed that he has not fully divested from his significant crypto portfolio, including shares in Digital Innovation Corp (DIC) and its associated token, DIT.
“As long as these assets remain in your ownership, any decisions you make could benefit you financially. Moreover, the public has every reason to suspect that your judgments may be swayed by your affiliations with the crypto sector,” the correspondence stated.
Citing previous remarks from a DIC co-founder, the congress members noted that, by the time of their inquiry, Carter had “no active role or financial stake in DIC operations.” However, they emphasized that his promise to divest had not been fulfilled by the time of the last available financial disclosures.
The lawmakers voiced their apprehensions over the “worrying connection” between the Special Envoy’s responsibilities and his personal financial interests, particularly emphasizing a $3 billion contract involving Digital Innovation Corp and a foreign tech agency that utilized the firm’s stablecoin feature.
Previous reports have echoed similar sentiments, pointing to a “dangerous overlap of government interactions and private business interests,” suggesting it could mislead foreign entities attempting to navigate relationships with the new administration.
In earlier analyses, it was suggested that Carter’s financial activities could contribute to the erosion of public trust, especially regarding dealings presented to the administration that sought major investments abroad.
Increasing Calls for Ethical Oversight
“Your inability to separate yourself from these financial commitments raises unsettling questions about your adherence to federal ethics standards and your duty to the public,” the representatives urged.
In their letter, the House Democrats set a deadline for Carter to clarify his financial situation by November 15, 2025. They specifically requested details surrounding his interests in the crypto company.
Moreover, they questioned whether Carter had received any formal exemptions that would permit him to engage in vital discussions involving the tech agency while maintaining his stake in DIC.
If no such exemption exists, they also required a comprehensive explanation on how Carter’s financial connections remain compliant with federal regulations, which restrict officials from being involved in matters that could financially impact them or their families.
It’s essential to note that Carter isn’t the only official facing scrutiny regarding personal investments linked to the crypto landscape. In June, House Democrats inquired about potential conflicts related to another appointed financial regulator’s ties to the crypto sector.
Moreover, new legislative proposals, such as the Crypto Accountability Act, have been introduced to mitigate conflicts of interest involving public officials and their investment portfolios.
An investigation has shown that, unlike many predecessors, current administration heads have not placed their crypto dealings in a secure trust managed by independent parties. However, the government has denied any conflicts impacting official responsibilities.
