Missouri Republican Rep. Mark Alford will present legislation on Wednesday that would prohibit congressional stock trading, acting as the House companion measure to Sen. Josh Hawley’s, R-Mo., “PELOSI Act” in the Senate.
Alford’s proposed measure prohibits members and their wives from owning, buying, or selling individual stocks while in office, but it permits for investments in diversified mutual funds, exchange-traded funds, or US Treasury bonds. If enacted, existing parliamentarians would have 180 days to comply with the bill. Similarly, freshly elected MPs must comply within 180 days of taking office.
“As public servants, we should hold ourselves to a higher standard and avoid the mere appearance of corruption,” Alford said in a statement. “Unfortunately, too many members of Congress are engaging in suspicious stock trades based on non-public information to enrich themselves.”
“These gross violations of the public trust make clear: we must finally take action to ban members and their spouses from owning or selling individual stocks,” he added.
Under the proposed legislation, politicians who continue to engage in improper transactions would be obliged to turn over any earnings to the US Treasury Department. The House or Senate ethics committees may additionally impose a 10% punishment on such politicians for each improper transaction.
In an interview with Time magazine last month, President Donald Trump advocated a ban on trading for members of Congress.
“I watched Nancy Pelosi get rich through insider information, and I would be okay with it. If they send that to me, I would do it,” he said of a trading ban.
“You’ll sign it?” the reporter pressed.
“Absolutely,” Trump responded.
House Minority Leader Hakeem Jeffries, D-N.Y., is among the Democrats in the House of Representatives who have expressed support for a ban last week.
California Democrat Nancy Pelosi has come under fire for years over her controversial and well-timed stock trades.
Now, several of her Democratic allies are joining Republicans to introduce legislation this week banning U.S. lawmakers and members of the executive branch from owning stock while in office.
The legislation in the Senate would prohibit those affected from owning stocks in individual companies, even through a blind trust.
Senators, representatives, staffers on Capitol Hill, the president, the vice president, and members of the executive branch would all be subject to the law.
“It is critical that the American people know that their elected leaders are putting the public first,” Gillibrand told the Wall Street Journal in a statement, adding, “not looking for ways to line their own pockets.”
