WASHINGTON (NEXSTAR) — Lawmakers from both sides of the aisle are coming together to try to ban members of Congress from trading stocks. They argue the practice itself creates a conflict of interest.
Democratic Sen. Kirsten Gillibrand of New York and Republican Sen. Josh Hawley of Missouri are teaming up to ban stock trading at the highest levels of the federal government.
“Members of Congress and senior members of the executive branch officials should be serving the American people, not lining their pockets,” said Gillibrand.
“This is long overdue,” said Hawley.
The bill would only allow officials and their family members to own broad-based mutual funds. Hawley said lawmakers and other federal officials have early access to valuable information that might affect stock prices.
“It may not technically be inside trading legally, but it’s still an incredible advantage to get the kind of information and then make millions of dollars on that,” said Hawley.
Gillibrand helped pass the 2012 STOCK Act, which required members of Congress to publicly disclose their stock holdings. But she says members are not following the rules.
“An astounding one in seven violated the stock act last Congress … so it’s clear we must go further,” said Gillibrand.
The crackdown seems to be gaining traction on Capitol Hill. Illinois Democratic Sen. Tammy Duckworth is one of more than two dozen lawmakers from the Senate and House endorsing a similar bill.
“We have to set the standard for the American people so they can have trust,” said Duckworth.
But last year, the effort failed. Opponents argue an outright ban could discourage middle-class Americans from seeking public office.
Senate Majority Leader Chuck Schumer has endorsed the trading restrictions but has yet to bring it up for a vote.
