A diverse group of representatives from the Progressive Caucus, the Freedom Caucus, and the Bipartisan Restoring Faith in Government Act (Bipartart) are joining forces to introduce a bipartisan ban on stock trading in Congress. The bill aims to prohibit members of Congress, their spouses, and their dependents from trading stocks and making financial investments.
Rep. Alexandria Ocasio-Cortez (D-NY) and Rep. Brian Fitzpatrick (R-PA), co-chair of the bipartisan Problem Solvers Caucus, introduced the bill on Tuesday. Despite rarely agreeing on any measure, both representatives have described this initiative as a "critical first step" towards returning power back to the people.
A growing number of lawmakers from both sides of the aisle have shown support for similar legislation designed to ban stock trading by members of Congress while they hold office. In January, a bipartisan group consisting of 37 legislators led by Reps. Adam Schiff (D-CA) and Abigail Spanberger (D-VA), introduced an analogous bill called TRUST in Congress Act.
The proposed legislation would require that members of Congress along with their immediate family place investments into blind trusts until after they leave office. This is seen as one way for elected officials not only avoid potential conflicts but also eliminate public concerns about possible insider-trading accusations.
Daniel Goldman's recent sale between $1,000-$15,000 worth shares at First Republic Bank drew attention regarding his oversight role over investment companies within his congressional capacity – highlighting precisely why many believe such restrictions should be put into place across all parties involved with governance matters related directly or indirectly through committee membership/work activities where decisions might affect specific industries/sectors financially benefiting those holding equity positions during periods when information becomes available allowing advantageous trades based upon knowledge gained solely due being part governing body responsible setting policies/regulations impacting said industry/sector.
Public momentum for a stock trade ban surged during the previous Congress when ex-Speaker Nancy Pelosi's husband conducted several high-value trades. In fact, nearly 100 House members bought or sold financial assets that intersected with their work in Congress from 2019 to 2021. The trades associated with committee work were split evenly along partisan lines, further emphasizing the need for bipartisan support of such legislation.
The current bill is co-sponsored by GOP Reps. Matt Gaetz (R-FL) and Brian Fitzpatrick (R-PA), alongside Democratic Reps. Alexandria Ocasio-Cortez (D-NY) and Raja Krishnamoorthi (D-IL). It aims to prohibit spouses and dependents of members from owning individual stocks or making trades as well. Furthermore, it requires any existing individual stock ownership be divested or placed into a "qualified blind trust" within 90 days following approval by House ethics officials.
Despite gaining traction among lawmakers on both sides of the aisle, this legislation is likely to face opposition from some members of Congress who have significant holdings in individual stocks themselves.