Rep. Mark Alford (R-MO) introduced legislation on Wednesday aimed at banning stock trading by members of Congress.
Alford expressed concern about the potential for corruption, stating, “As civil servants, we should uphold higher standards and avoid even the appearance of impropriety. Unfortunately, many in Congress are involved in dubious stock trades that benefit them through insider information.”
“These are clear violations of public trust. We need to act to prevent members and their spouses from owning or trading individual stocks,” he added.
In response, Missouri conservatives have put forward the Pelosi Act, which seeks to prohibit lawmakers and their spouses from buying or selling individual stocks during their time in office. However, it would allow investments in various mutual funds, exchange-traded funds, or U.S. Treasury securities.
Senator Josh Hawley (R-MO) has presented a Senate version of the bill.
If lawmakers break the rules set by the Pelosi Act, they would be required to return any ill-gotten gains to the Treasury. Additionally, the House or Senate Ethics Committee would impose fines amounting to 10% of the profits for each illegal transaction.
Speaker Mike Johnson (R-LA) voiced support for the ban, noting that “some misconduct” has undermined public trust in elected officials.
“Honestly, I think we need this change because it’s important that there’s no appearance of injustice,” he remarked.
Former President Donald Trump also expressed support for the idea in April, saying, “I’d be okay with seeing Nancy Pelosi make money off insider info. If I got the chance, I’d do it too.”
Additionally, House Minority Leader Hakeem Jeffries (D-NY) backed the proposal.
The Pelosi Act is closely related to the bipartisan Congressional Knowledge (Equities) Act, which mandates that lawmakers or their spouses disclose stock transactions exceeding $1,000 within 45 days.
In 2011, Peter Schweizer, head of the Government Accountability Institute, highlighted insider trading by Congress members, sparking widespread interest in the issue. His book, Throw Them All Out, played a crucial role in igniting discussion around this topic.
One notable figure in Schweizer’s book was Spencer Bachus (R-AL), then-chairman of the House Financial Services Committee, who chose not to run for reelection following the book’s revelations.
The late Andrew Breitbart called attention to the need for accountability, producing a report based on Schweizer’s findings, which earned recognition for excellence in journalism.
