Proposed Legislation to Ban Stock Trading for Legislators
House Republicans are pushing forward with new legislation aimed at preventing members of Congress, as well as their spouses and dependent children, from engaging in stock trading. This move responds to ongoing ethical concerns regarding lawmakers’ investment activities.
A draft of the bill reviewed reveals that it would prohibit Congress members and their families from purchasing stocks or similar securities while serving in office.
The proposed law also mandates that any stock sales must be publicly disclosed at least seven to 14 days in advance. This disclosure should outline the number of shares involved and the anticipated date of sale.
If lawmakers and their families decide to retain their investments, they must revoke these disclosures.
This legislation is being spearheaded by House Administration Committee Chairman Brian Steil from Wisconsin.
Should any member violate these trading restrictions—either directly or through family—penalties would be imposed, and they would be required to liquidate any affected investments.
The fines for such violations would either be $2,000 or 10% of the transaction amount, along with any net profit recognized, as determined by the Office of Supervisory Ethics.
Moreover, lawmakers would face limitations on using their authorized budgets to cover these fees or to fund campaign expenses.
If a lawmaker resigns prior to settling any fines related to this stock trading ban, the House or Senate Ethics Office could refer the case to the Justice Department.
Under Steil’s proposed legislation, the stock trading restrictions would take effect 180 days following its enactment.
According to sources, the House Administration Committee plans to conduct a markup hearing on this bill soon.
While various bills aimed at banning stock trading have been proposed in recent years, none have yet made it into law.
