Rep. Dan Meuser, R-Pa., and Rep. Gil Cisneros, D-Calif., disclosed that they or their family members purchased SpaceX stocks in the days following the company's initial public offering on June 12, according to publicly accessible House financial documents. Meuser's dependent child made a June 15 purchase of between $15,001 and $50,000, while Cisneros disclosed a June 18 purchase of between $1,001 and $15,000. The transactions represent the first known congressional stock buys after SpaceX went public with a market cap exceeding $2 trillion, raising approximately $75 billion in the largest IPO on record.
Meuser and Cisneros Disclose SpaceX Stock Purchases
Meuser recently disclosed that his dependent child made a June 15 purchase of between $15,001 and $50,000 of SpaceX stock, according to publicly accessible House financial documents. The filing marked the first time in several years Meuser or one of his family members bought stock in an individual company, according to financial disclosures.
Cisneros disclosed a June 18 purchase of between $1,001 and $15,000 in SpaceX stock. A spokesperson for Meuser did not immediately respond to a request for comment on Friday.
Cisneros Cites Fiduciary Management in Statement
In a statement to CNBC, Cisneros said he does not personally manage his portfolio. "My wife and I have always employed outside financial advisors who have a fiduciary responsibility to maintain a diverse portfolio. We do not manage the day-to-day trading of our investment portfolio, nor have we ever suggested a trade while serving in Congress or at the Department of Defense," Cisneros stated.
Cisneros was appointed by President Joe Biden to serve as the under secretary of defense for personnel and readiness in 2021. "Additionally, while serving in both the executive and legislative branches of the government, I have always complied with all rules and regulations regarding stock trading and financial disclosures. I will also continue to advocate for more ethics oversight of federally elected and politically appointed officials in regard to their financial portfolios," Cisneros' statement continued.
Committee Assignments Raise Conflict-of-Interest Questions
Meuser sits on the House Financial Services Committee, which has jurisdiction over securities and exchanges. Cisneros sits on the House Armed Services Committee, which oversees the Defense Department, a major SpaceX customer. The Defense Department awarded SpaceX a $4.16 billion Space Force contract for threat detection satellites.
Members of Congress and their immediate family members are allowed to own and trade individual stocks as long as they comply with disclosure rules and do not use confidential information obtained through their official positions. There is no evidence Meuser or Cisneros traded on nonpublic information or violated any law.
STOCK Act Compliance and Legal Framework
The STOCK Act requires lawmakers to disclose transactions by themselves, their spouses and dependent children. Ethics watchdogs previously told CNBC that the filings are likely the tip of the iceberg of what's to emerge from financial disclosures in the following weeks, with many expecting a host of congresspeople on both sides of the aisle to have traded SpaceX's IPO.
McClain's xAI Investment Preceded SpaceX Merger
CNBC previously found that Rep. Lisa McClain, R-Mich., one of the House GOP's top leaders, had a family investment positioned to benefit from SpaceX's public debut after her husband bought as much as $250,000 in xAI before Elon Musk folded the artificial intelligence company into SpaceX. There is no evidence McClain knew about later government actions involving xAI or traded on nonpublic information.
"Chairwoman McClain's investments are a matter of public record," Joe Buccino, the House Republican Conference communications director, told CNBC in a statement in June. "They have been made in line with all House and applicable laws."
SpaceX IPO Performance and Market Data
SpaceX went public on June 12, raising roughly $75 billion in the largest IPO on record. Shares opened at $150 and quickly pushed the company's market value past $2 trillion. SpaceX shares closed at $162 on Thursday, up about 8% from their $150 opening price, but roughly 20% below their June 16 closing high of $201.80.
Efforts to ban members of Congress from owning or trading individual stock have percolated for years, but have repeatedly fallen short. House Republican leaders vowed at the end of last year to bring to the floor a bill banning members from trading while in office. A similar Senate proposal advanced out of committee in July. Neither chamber has taken further action on a congressional trading ban.
FAQ
What did Rep. Meuser and Rep. Cisneros purchase after the SpaceX IPO?
Rep. Dan Meuser's dependent child purchased between $15,001 and $50,000 of SpaceX stock on June 15, while Rep. Gil Cisneros purchased between $1,001 and $15,000 on June 18, according to publicly accessible House financial documents.
Why are the SpaceX stock purchases by Meuser and Cisneros politically sensitive?
Meuser sits on the House Financial Services Committee, which has jurisdiction over securities and exchanges, while Cisneros sits on the House Armed Services Committee, which oversees the Defense Department, a major SpaceX customer that awarded the company a $4.16 billion Space Force contract for threat detection satellites.
