Missouri Republican Senator Josh Hawley has introduced a bill that will effectively ban stock trading for members of congress who are taking advantage of insider information.
The Daily Wire recently reported, members of Congress and their immediate families exchanged over $630 million in stocks in 2021. When House Speaker Nancy Pelosi was asked about this in a press conference, she responded in a very awkward tone saying “We are a free-market economy” claiming that members of Congress “should be able to participate in that”
The Banning Insider Trading In Congress Act is seeking to “amend the Ethics in Government Act of 1978 to prohibit transactions involving certain financial instruments by Members of Congress.”
It seeks to ban members of Congress from investing in securities, futures, commodities, and derivatives. They can trade in diversified mutual funds, diversified exchange-traded funds, US Treasury bills, notes, or bonds and compensation from a spouse’s primary occupation.
Newly elected lawmakers would have six months to divest their aforementioned banned holdings or transfer them to a blind trust while they are serving in Congress.
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This bill is expected to receive bipartisan support given the widespread scrutiny members of congress are getting from their constituents for taking advantage of insider policies and making a profit with them.
Democrat Senators Jon Ossoff and Mark Kelly have recently introduced similar legislation and added additional measures by banning children of sitting members of Congress from trading these securities.
What do you make of this bill? Do you think members of Congress should be allowed to trade in the free market? Share your thoughts in the comments below!