Legislation prohibiting stock trading by members of Congress may soon be on the floor for a vote, The Hill reported.
More than two dozen lawmakers, including a group led by Reps. Angie Craig, D-Minn., Andy Kim, D-N.J., Joe Neguse, D-Colo., Raja Krishnamoorthi, D-Ill., Katie Porter, D-Calif., and Abigail Spanberger, D-Va., are urging House Speaker Mike Johnson, R-La., to bring forward a bill prohibiting members of Congress from engaging in stock market activities.
In a letter addressed to Speaker Johnson, House Minority Leader Hakeem Jeffries, D-N.Y., and key members of the House Administration Committee, the lawmakers emphasized the importance of this legislative move in ensuring that members of Congress prioritize the interests of their constituents over personal financial gains.
The proposed legislation seeks to impose a comprehensive ban on stock trading for all members of Congress, their spouses, and dependents below 18 years of age. The call for this stock trading ban is supported by a diverse group of lawmakers, with signatories primarily comprising Democrats.
The initiative to restrict lawmakers from participating in the stock market gained traction in recent years, fueled by high-profile incidents. Despite multiple attempts, previous endeavors to bring such a bill to a vote faced setbacks.
The proposed ban would bar "owning or trading securities, commodities, futures, derivatives, options, or other similar financial assets." Additionally, the ban would extend to investments traded through an investment vehicle controlled by the covered person.
To comply with the proposed restrictions, members and their families would be mandated to divest from prohibited investments. Alternatively, they could place these assets in a blind trust or diversify their investments through widely held, diversified mutual or exchange-traded funds or U.S. Treasury bills, notes, or bonds.
The letter highlighted the existence of bipartisan legislation aligned with these principles and emphasized public sentiment that members of Congress should refrain from trading stocks while in office. The lawmakers stressed that a vote on the proposed bill would uphold the highest standards for elected officials.
"We know that the overwhelming majority of Americans believe that members of Congress should not be allowed to trade stock while in office," they added. "We respectfully urge you to ensure elected officials are held to the highest standard," the lawmakers wrote.