The Capitol Hill is abuzz with the latest bipartisan effort to push a new stock trading ban for members of Congress. The proposed legislation, named the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act, aims to prevent lawmakers, their spouses, and dependents from engaging in stock and securities trading.
The move comes in the wake of heightened scrutiny over lawmakers’ lucrative stock trades, with over $1 billion in trades made in 2023 alone. Despite existing laws to restrict insider trading by members of Congress, critics argue that loopholes still exist, allowing some to engage in risky trading practices.
The bipartisan group of senators, including Sens. Gary Peters, Jon Ossoff, Jeff Merkley, and Josh Hawley, introduced the bill that would impose a ban on trading for members immediately after being signed into law. Trading restrictions for spouses and dependents would follow in March 2027.
The proposed legislation also includes penalties for violating the ban, with offenders facing a fine of 10 percent of the value of the asset bought or sold. Supporters of the bill emphasize the need to prevent lawmakers from profiting off privileged information only available to them.
The push for a stock trading ban is gaining momentum in the House as well, with 20 lawmakers urging House leadership to take action on similar legislation. The bipartisan effort underscores the importance of serving the country and constituents over personal financial interests.
The issue of congressional stock trades has been a contentious one, especially since the pandemic, when some lawmakers were accused of selling stocks following closed-door COVID-19 briefings before the market crashed. The proposed ban seeks to address these concerns and restore public trust in Congress.
Overall, the bipartisan effort to ban stock trading for members of Congress reflects a commitment to ethical governance and accountability in Washington. The upcoming markup on the bill in July signals a significant step forward in addressing the issue and ensuring lawmakers prioritize public service over personal financial gain.
