In a significant move to address potential conflicts of interest and enhance transparency, the US Senate is poised to vote on a new bill that would ban members of Congress from trading stocks. This bipartisan effort is led by Democratic Senator Kirsten Gillibrand and Republican Senator Josh Hawley. The legislation, known as the Ban Stock Trading for Government Officials Act, aims to prevent lawmakers and senior executive branch officials from profiting from non-public information acquired through their positions.
The proposed bill prohibits members of Congress, the President, Vice President, and senior executive branch officials, along with their spouses and dependents, from trading or owning stocks, even in blind trusts. The legislation would impose significant fines for violations, including at least 10% of the value of the prohibited investments for Congress members and substantial fines for executive branch employees. Additionally, the bill mandates the creation of a public, searchable database of stock transactions by government officials to ensure transparency.
The initiative builds on the STOCK Act, which aimed to prevent insider trading among Congress members but has seen numerous violations and improper stock trade reporting. The new bill seeks to close these loopholes and provide more stringent enforcement. Senator Hawley emphasized that there is no justification for members of Congress profiting from information that is not available to the public, underscoring the ethical concerns surrounding current practices.
Public support for this measure is robust, with various polls indicating broad bipartisan approval among voters. A University of Maryland poll found that a large majority of respondents favor prohibiting stock trading by top government officials.
