Rep. Michael McCaul (R-TX), the author of an early draft of the bill to ban TikTok and the sponsor of the consolidated spending package that got the ban passed in the Senate, has been accused of insider trading following revelations that he recently invested heavily into the app’s competitor company Meta.
McCaul, the chair of the House Foreign Affairs Committee, introduced a bill in May 2023 called the Deterring America’s Technological Adversaries Act (DATA Act). It mandated sweeping federal actions to ban the transference of the personal information of Americans and give regulatory powers to the government to crackdown on Chinese software, specifically referencing TikTok by name, and to sanction any individuals involved.
When the Chinese spy balloon flew across the United States in early 2023, McCaul began describing the app as a “spy balloon in your phone.”
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“[TikTok is] a spy balloon in Americans’ phones” designed to “surveil and exploit America’s personal information,” McCaul said when he introduced the measure to the House.
While the version of the ban that was just passed, titled “Protecting Americans from Foreign Adversary Controlled Applications Act,” was introduced by Rep. Mike Gallagher (R-WI) in March, McCaul introduced the measure that combined it with the foreign aid spending packages, which allowed it to get passed through the Senate.
“This bill also protects Americans—especially our children—from the malign influence of the Chinese Communist Party-controlled TikTok,” McCaul said on the House floor on April 20th. When the combined bill was passed, he said he was “very pleased.”
I am very pleased the House passed our bipartisan national security supplemental package.
We must stand strong in the face of aggression; our adversaries are watching us.
The Senate must pass this critical piece of legislation and send it to the president's desk immediately. https://t.co/9Wonovrjss
— Michael McCaul (@RepMcCaul) April 20, 2024
According to CapitolTrades.com, McCaul has made multiple six-figure purchases of Meta Platforms (META), TikTok’s direct competitor, in late March.
According to FinBold, McCaul bought $350,000 worth of Meta stock on April 4th and 5th. McCaul is a big-time investor in Meta, having invested at least $700,000 in the past.
🚨You can’t make this up
Rep. Michael McCaul bought $700K worth of $META two weeks before voting YES on the bill to ban TikTok
4/1: Buys $350K
4/5: Buys $350K
4/13: Votes yes to ban TikTokLiterally insider trading pic.twitter.com/8dXonV88jt
— Insider Tracker (@TrackInsiders_) April 24, 2024
Valuetainment founder and CEO Patrick Bet-David reacted to a clip from TikTok user “theoldermillennial.1” who broke down the story. “This is worst than insider trading,” Pat wrote. “Many of them from the left and right keep getting richer using these tactics. Maybe this why they’re on the same team.”
This is worst than insider trading.
Insider trading is the buying or selling of a company's stock by someone who has material, non-public information about the company. Insider trading is illegal and can result in fines and jail time.
Now imagine if you’re a US… https://t.co/py0kWbiBqx
— Patrick Bet-David (@patrickbetdavid) April 26, 2024
Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.
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