U.S. House of Representatives Speaker Nancy Pelosi (D-CA) speaks during her weekly news conference on Capitol Hill in Washington, U.S., February 3, 2022.
Ken Cedeno | Reuters
WASHINGTON – House Speaker Nancy Pelosi and Democratic leaders have unveiled plans to craft legislation that would ban members of Congress from trading stocks, CNBC confirmed Wednesday.
At Pelosi’s direction, the House Administrative Committee is working to draft rules and legislation that is expected to be put to a vote this year, possibly before the midterm elections in November.
In the Senate, several versions of the stock trading ban are under consideration, including one co-sponsored by Radical Democratic Sen. Elizabeth Warren of Massachusetts and Republican Senator Steve Daines of Montana. author.
“When you’re elected, you’re here to serve the people, not the elite, and [a stock trading ban] I think it’s a step forward, an important step forward, to restore the trust and confidence of the American people in this institution,” Daines told CNBC Wednesday.
Questions remained on Wednesday about what types of investments will be banned, what members are about to be required to do to comply with the new law and whether family members of lawmakers will be subject to legal action. stock trading is prohibited.
However, Pelosi’s support of a stock trading ban in the House, first reported by Punchbowl News, represents a significant shift for the Speaker, and comes after years of leaders. Congressional leaders on both sides of the aisle reject the idea of restricting the investments of members of Congress. can be kept.
In the past, House and Senate leaders have stated that a ban on stock trading would hurt their party’s efforts to recruit the best candidates to run for Congress. Meanwhile, many of their families have made their fortunes by investing in the stock market, including Pelosi’s.
However, in recent months, Pelosi and her highest levels have come under increasing pressure from level and profile members to act on and pass a ban on stock trading.
The increasingly vocal calls for the ban have been fueled in part by growing public support for the stock trading ban by lawmakers.
They also reflect the impact of new revelations on the extent of widespread violations of existing law, the STOCK Act 2012, designed to prevent insider trading and conflicts of interest in Congress.
Last year alone, 54 members violated the rules of the STOCK Act, according to an analysis by Business Insider published earlier this year.
“The intent here is to make sure that members and their spouses do not trade or hold individual stocks and bonds, etc.,” Daines said Wednesday. “Listen, you put your assets in a blind trust, you still know what assets were put in that blind trust. That’s just the reality of it and we’re trying to reduce the impulse. conflict of interest here.”
There are growing signs that the public also supports the ban. ONE Recent survey commissioned by a conservative advocate found that 76% of voters believe legislators and their spouses have an “unfair advantage” in the stock market. The same survey, conducted by the Pact of States of Action, also found that only 5% of voters are likely to approve of members of Congress trading stocks.
This is a developing story, please check back for updates.
