The entire text of Nancy Pelosi’s bill banning politicians from trading stocks has now been made available to the public.
After numerous revelations revealed that hundreds of politicians routinely traded stocks that were directly related to their employment in Congress, the document was made public in response to months of public criticism. Voting could take place as early as this week.
In accordance with the 26-page “Combatting Financial Conflicts of Interest in Government Act,” stock ownership or trading by members of Congress, their spouses, and other government employees, including Supreme Court justices, is prohibited.
The measure would also toughen the penalties for breaking conflict-of-interest rules and add new transparency regulations.
Members may still invest in diverse exchange-traded funds, mutual funds, US Treasury securities, as well as bonds issued by state and local governments.
The Wall Street Journal reports that House Majority Leader Steny Hoyer has regularly said in private meetings that he would vote against the measure. This presents at least one challenge for the proposal. Hoyer sets the floor schedule for votes with the help of his staff, and other Democrats may follow suit in reaction to his opposition.
Pelosi and her husband Paul have been the most blatant violators, despite the fact that members of both parties have been discovered in questionable deals. For example, only this summer, Paul purchased $5 million in semiconductor chip firm shares just days before a vote that handed the sector $52 billion, drawing criticism for the pair’s habit of trading big amounts of money.
Over 100 members of Congress are said to have bought or sold financial assets that impacted the work of the committees they sit on, according to a New York Times investigation.
183 of the 435 House members traded stocks via themselves or members of their immediate family between 2019 and 2021. At least 97 members of Congress bought or sold stocks, bonds, or other financial assets via themselves or their spouses, which was directly at odds with their legislative duties.
The 48 Democratic and 49 Republican deals that affect committee business are evenly distributed along partisan lines.
The fact that approximately one-fifth of Congress has participated in activities that may constitute a conflict of interest has spurred a number of legislative initiatives to outright forbid lawmakers from making transactions.
According to the STOCK Act, which became law in 2012, Congressmen are required to report stock transactions involving themselves or members of their close family that amount $1,000 or more.
Tom Carper, a Democrat from Delaware, declared having 39 possible conflicts of interest and dealing in 138 firms. Josh Gottheimer, a Democrat from New Jersey, declared having 43 conflicts of interest and dealing in 326 firms. Californian Democrat Rho Khanna disclosed investing in 897 firms and having 149 possible conflicts.