Treasury Secretary Pushes for Stock Trading Ban for Congress Members

Treasury Secretary Scott Bescent called for a prohibition on trading individual stocks, specifically mentioning former House Speaker Nancy Pelosi and Senator Ron Wyden during his remarks.

“I’m going to start advocating for a ban on single shares because it affects the trust in the House and Senate,” Bescent stated on Bloomberg TV. He pointed out some impressive returns enjoyed by figures like Senator Pelosi and Senator Wyden, suggesting that many hedge funds are envious, while asserting that the American public deserves better.

His remarks come amid growing support for restrictions on Congress members trading individual stocks. Although current laws prohibit insider trading and mandate disclosure, critics argue the legislation isn’t effectively enforced.

“People shouldn’t come to Washington to get wealthy; they should be serving the American public. If I engage in trading like this, it undermines trust in our system,” he added, suggesting that the Securities and Exchange Commission should be vigilant.

Pelosi has faced intense scrutiny, particularly regarding her husband Paul Pelosi’s profitable investments.

In response to Bescent’s statements, Pelosi’s spokesperson, Ian Krager, mentioned that she has also backed a bill aimed at banning share trading for members of Congress, their spouses, and dependent children, along with the president and vice president. However, this requirement won’t kick in until the next term, which could exempt former President Trump.

Trump has expressed support for the ban but also criticized Senator Josh Hawley for backing the measure, suggesting he was mistaken in thinking it would apply to him.

Calls for a stock trading ban are coming from both sides of the aisle in the House, with Representative Anna Paulina Luna promising to initiate a discharge petition to push for a vote on another stock trading ban bill.

Meanwhile, Wyden’s stock investments reportedly surged by 123.8% in 2024, a figure revealed by a financial analytics firm, although his office has not responded to inquiries.

Concerns around stock trading aren’t limited to Democrats. A recent House Ethics Committee report highlighted that Representative Mike Kelly violated conduct codes when his wife traded shares of a company in his district after he gained access to private information about that company.

Representative Rob Bresnahan also faced criticism for continuing to trade stocks, despite his calls for a ban among members. He has introduced a bill to prohibit stock trading and claims he is not involved in any transactions made by his financial advisor. While he aims to establish a blind trust to better separate his finances from his political role, he ran into complications while trying to implement this plan for the House Ethics Committee.