- Two U.S. senators are proposing a bill to ban stock trading for Presidents and Congress from parking in stock trading.
- According to the “Ban Stock Trading for Government Officials Act,” failure to comply with the regulations could warrant penalties.
Two Senators are proposing a bill that could exclude certain government officials from participating in stock trading. The “Ban Stock Trading for Government Officials Act,” is being proposed by Senators Kirsten Gillibrand [D-NY] and Josh Hawley [R-MO].
Both Senators are looking to resist stock trading access for Congress members. Presidents, Vice Presidents, and Senior executive branch officials are not exempt from the law. The proposal contains a handful of provisions and propositions. The bill is designed to regulate stock trading amongst the aforementioned figures.
Contained in the bill, are penalties for officials who go against the proposal. Notably, government officials are required to report grants, contracts, loans, and any form of payment and benefits received. However, salaries, tax refunds, and compensation are excluded from the list.
In the long run, the bill will bring more transparency to the market. It will also champion accountability amongst government officials. This could potentially curb and reduce potential conflicts that may arise.
Speaking on other issues that the bill intends to tackle, Senator Kirsten Gillibrand explained that the bill is an add-on to the STOCK Act.
New Stock Trading bill rides on the back of the STOCK Act from 2012
The STOCK Act passed in 2012, is also referred to as the Stop Trading on Congressional Knowledge Act. The act was put into law after multiple media publications criticized the stock trading by members of the U.S. Congress.
The Act significantly focused on the expansion of the reporting requirements for securities transactions by members of Congress, along with senior federal officials, that were enacted as far back as 1978.
Going forward, the STOCK Act also emphasizes that members of Congress are always subject to
U.S. securities laws, that halt trading on metrical material non-public information.
As Senator Gillibrand is quoted as saying;
Sunlight is the best disinfectant. It is critical that the American people know that their elected leaders are putting the public first – not looking for ways to line their own pockets.
Conclusively, the senator explains that the rules aim to fully support public confidence in the Committee’s work, and maintain their impartiality and integrity by “guarding against even the appearance of any conflict of interest.”
The new development comes not long after the Federal Reserve approved new regulations that implemented a ban, restricting officials from trading bonds, stocks, and digital currencies.
The Federal Open Market Committee (FOMC), which was responsible for policymaking, enacted some of these restrictions back in May. The rules covered FOMC members and regional bank presidents, along with other staff officials.
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