Thousands of dollars have been staked in cryptocurrency by certain Politicians and their families.

Thousands of dollars have been staked in cryptocurrency by certain Politicians and their families.

Cryptocurrency is being scrutinized by Congress as an investment option. According to a CNBC study, eight lawmakers or members of their immediate families have traded cryptocurrencies in the last year, with wagers ranging from $1,000 to $100,000.

Seven Republicans, including Pennsylvania Senator Pat Toomey, the financial committee's ranking member, bought or sold cryptocurrency. According to the study, only one Democrat, Rep. Marie Newman of Illinois, recorded a transaction.

Bitcoin was by far the most popular cryptocurrency, with trades totaling an estimated $229,000, including through an ETF. With a total value of around $40,000, ether came in second. Even legislators got in on the meme coin craze, trading about $32,000 in dogecoin.

Members of Congress also experimented with Cardano, Stellar, Celo, Chainlink, Basic Attention Token, and EOS, which are less well-known cryptocurrencies.

Instead of a specific value, each trade is given as a range. CNBC tallied overall transaction activity using the midpoint of the range in its analysis. The research is based on financial reports from Congress and data from Capitol Trades, a public database created by 2iQ.

The bitcoin trades add a new wrinkle to the discussion in Congress about potential conflicts of interest. As lawmakers and regulators consider new regulations for the cryptocurrency industry, the industry is ratcheting up its lobbying efforts. However, it's unclear if suggestions to prohibit lawmakers from trading individual equities would apply to crypto.

Senator Sherrod Brown, D-Ohio, who has presented legislation restricting stock trading, told CNBC that crypto poses unique challenges not found in regular investing. The Senate Banking Committee, which Brown chairs, convened a hearing on stable coins on Tuesday.

"It is inappropriate for members of Congress to acquire and sell corporate stocks here." "I spent a decade fighting against that practice," he stated. "It's more sophisticated than that in crypto."

Toomey has been a vocal opponent of any trading restriction, claiming that it would demotivate public service. He has defended existing legislation that requires financial disclosure and expressly prohibits Congress from engaging in insider trading. His crypto investment, according to a spokesman, is simply a mirror of broader financial trends.

In June, Toomey purchased shares in Grayscale's bitcoin and ether investment vehicles, each worth between $1,000 and $15,000.

Two of the legislators who traded cryptocurrencies in the last year told CNBC that they support financial restrictions on Congress.

In November, according to Newman's financial filings, her spouse invested between $15,000 and $50,000 in the Grayscale Bitcoin Trust. A joint account was used to purchase items ranging from $1,000 to $15,000 in January. Her husband handled both trades, according to a representative.

Waltz purchased bitcoin twice in June, investing between $15,000 and $50,000 each time. He stated the purchases were done with his financial manager's advice, but he believes crypto can transform the financial markets.