A bipartisan Senate duo wants to ban congressional lawmakers and senior executive branch officials from trading or owning stocks, even in blind trusts.
The Ban Stock Trading for Government Officials Act from Sens. Josh Hawley, Missouri Republican, and Kirsten Gillibrand, New York Democrat, would also ban stock trading among spouses and dependents of covered officials.
Members of Congress face penalties of up to 10% of the value of the prohibited investments for violations, while executive branch officials would be forced to yield all profits to the Treasury or face a fine of $10,000, whichever is higher.
Whether powerful Washington figures should be allowed to trade stocks has been a long-running debate. There are fears lawmakers use advanced knowledge and insider briefings in buying and selling shares, enriching them while everyday Americans struggle.
“Politicians and civil servants shouldn’t spend their time day-trading and trying to make a profit at the expense of the American public, but that’s exactly what so many are doing,” Mr. Hawley said. “My bill with Senator Gillibrand is common sense: ban elected and executive branch officials from trading or holding stocks, and put the American public first.”
A poll by Morning Consult and Politico found 68% of registered voters support banning members of Congress from trading stocks while a University of Maryland poll found nearly nine in 10 want to bar the president, vice president and the Supreme Court from trading in individual companies.
An existing law, the STOCK Act, forbids members of Congress from using insider Capitol Hill information to trade stocks but sponsors of the new bill say members found ways around it and aren’t properly disclosing their trades.
They say the new bill will put muscle behind restrictions through penalties and disclosure requirements, including a provision that requires members of Congress, senior congressional staff, the president, vice president and senior executive branch employees to report any time they, a spouse, or a dependent applies for or receives a benefit of value from the federal government.
“This bill is the most substantive bipartisan effort to date and I’m going to work hard alongside Senator Hawley to get it signed into law,” Ms. Gillibrand said.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
Please read our comment policy before commenting.