New Push to Ban Stock Trading by Congress Members

In Washington, two opposition senators are teaming up to advocate for a ban on stock trading by Congress members. This move, although popular among the public, has faced repeated setbacks on Capitol Hill.

Democratic Senator Kirsten Gillibrand from New York and Republican Senator Ashley Moody from Florida plan to present legislation on Thursday that would prohibit Congress members and their immediate family from trading or owning individual stocks. This proposal was initially reported by The Associated Press.

This effort is part of a broader series of proposals in both the House and Senate aimed at curtailing stock trading practices in Congress. While bipartisan support exists, the number of different proposals complicates the path forward. House GOP leaders are backing their own version of a stock ownership bill, which critics argue is less stringent.

“There’s no clear bipartisan agreement on this issue, but there is a strong public consensus that Congress members and the administration shouldn’t profit from their positions,” Gillibrand mentioned in an interview with The Associated Press.

Bipartisan Support, Yet No Clear Consensus

Recently, the issue of stock trading in Congress has raised ethical concerns. There have been allegations against some members for profiting from stock trades based on non-public information. Both parties have campaigned on the promise to end such practices, forming an unusual alliance in Congress.

In the House, for instance, Republican Representative Anna Paulina Luna of Florida is trying to push a vote on her stock trading bill by bypassing party leadership. So far, she has gathered 79 of the 218 signatures needed, most of which come from Democrats.

Meanwhile, House GOP leaders support a different bill that restricts members and their spouses from buying individual stocks, but it doesn’t require them to divest existing holdings. Currently, lawmakers must provide a seven-day notice before selling stocks. This alternative was reviewed in committee on Wednesday, but its future is uncertain.

Gillibrand and Moody are proposing a version of a House bill first introduced last year by Republican Representative Chip Roy of Texas and Democratic Representative Seth Magaziner of Rhode Island. Their proposal, which has garnered 125 co-sponsors, aims for a complete ban on individual stock trading by Congress members.

Magaziner and other House Democrats, including New York’s Alexandria Ocasio-Cortez, expressed disappointment about the Republican leadership’s bill, stating it falls short of necessary reforms.

The Senate version proposed by Gillibrand and Moody would provide members with 180 days after enactment to sell their individual stock holdings. Newly elected officials would have 90 days from their swearing-in to liquidate any stocks. Additionally, trading or owning other financial assets like securities, commodities, and futures would be prohibited.

“Americans need to trust that their elected officials prioritize the public good over personal profits,” Moody stated in response to questions from The Associated Press.

Exemptions and Criticism

The proposed bill would also exempt the president and vice president, a provision likely to attract criticism from some Democrats. Similar objections were raised last year concerning a bill aimed at restricting Congress from dealing in certain cryptocurrencies.

Gillibrand noted that while the president should ideally be held to the same standards, this bill represents “a good starting point.” She added, “We shouldn’t let the pursuit of perfection deter us from making progress on important issues.”

In a written response, Moody emphasized the importance of Congress maintaining its “constitutional purse power” without personal economic interests influencing decisions.

Future Prospects and Election Implications

It’s still unclear if the current bill will reach a vote in the Senate. A similar proposal introduced earlier this year by Gillibrand and Republican Senator Josh Hawley of Missouri didn’t advance out of committee.

The issue remains prominent in election discussions, particularly as Moody seeks election for a full term in Florida after Marco Rubio took office. Gillibrand is also involved as the campaign chair for Senate Democrats.

“The time is right,” Gillibrand asserted. “We’ve reached a consensus, and there’s a public demand to make this happen.”