Momentum is gathering in Congress among Democrats and Republicans to limit stock trading by congressional members.
Momentum is gathering in Congress among Democrats and Republicans to limit stock trading by members of the House and Senate. But not everyone from both parties is on board.
Several bills have been introduced to limit trading, but there are plenty of issues where there’s conflict. That includes whether trading should be banned or securities put in a trust instead.
There is disagreement as to whether spouses and other family members also should be banned from trading stocks, whether capital gains taxes on forced stock sales should be applied immediately and whether the prohibition should include other assets, such as businesses, The New York Times reports.
“It’s easy to say yes, the complexities are spouses and families and others,” said Sen. Mark Warner (D-Va.), according to Bloomberg. “I have to take a look at all that.” He said he has a blind trust and doesn’t trade individual stocks.
House Majority Leader Nancy Pelosi opposed a stock trading ban until last month. Now she says any legislation must include the judiciary too. But some congressional members say that’s simply a way to bury the bill.
Rep. Abigail Spanberger (D-Va.) is sponsoring a bill to make lawmakers, their spouses and dependents place stocks in blind trusts. “The American public thinks that members of Congress are self-dealing, and the American public deserves to trust us more,” she said, according to The Wall Street Journal.
“Not Enthusiastic”
“Should we be talking about the judicial branch? Should we be talking about staff? We are the ones who are elected.”
Sen. Steve Daines (R-Montana) is sponsoring a bill to forbid Congress members and their spouses from owning and trading individual stocks. “Members shouldn’t be able to make legislative decisions or use their platform and influence to benefit themselves personally, which is why it should be no question that owning and trading stocks should be banned,” he said in a statement.
Rep. Elissa Slotkin (D., Mich.), who is sponsoring two bills in the House to restrict trading, thinks spouses should be included.
“If you were using classified information you had access to or privileged information, and you yourself weren’t trading, but your spouse was going back and forth?” she said, according to The Journal. “It just contributes to a perception that Congress can enrich themselves off these jobs.”
The law now forbids Congress members from using non-public information they learn from their work for personal benefit. And they have to disclose securities trades totaling more than $1,000 made by themselves, spouses or dependent children.
Not everyone feels certain the rules need to be changed. Sen. Toomey (R-Penn.) said he will examine the bills, but he’s “not enthusiastic,” according to Bloomberg. “I think it’s a solution in search of a problem, and one more thing that makes it unattractive for some people to serve in Congress.”
