U.S. Sens. Kirsten Gillibrand (D-NY) and Josh Hawley (R-MO) are espousing newly introduced legislation they said represents the most substantive effort to ban stock trading by members of Congress.
The lawmakers recently detailed the Ban Stock Trading for Government Officials Act, which would create stringent stock trading bans and disclosure requirements for Congress, senior executive branch officials and their spouses and dependents.
“Sunlight is the best disinfectant,” Gillibrand said. “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.”
The measure would ban stock trading, stock ownership, and blind trusts; impose penalties for executive branch stock trading; requires reporting of federal benefits; creates additional transparency in financial disclosure reports; and increases transaction report penalties under the original STOCK Act.
Bill provisions include ensuring executive branch officials disgorge profits from covered financial interests to Treasury; the Office of Special Counsel referring the case to the attorney general and recommending additional civil action if the case is comparatively substantial in monetary value or extraordinary in nature; requiring reporting that includes payment type, recipient name date and amount; and a penalty of $500 imposed for failure to file.
The lawmakers cited a Morning Consult/Politico poll determining at least 63 percent of Americans support banning stock trading for members of Congress and their families, as well for the president, vice president and top officials at federal government agencies.
The poll was conducted between Oct. 21-Oct. 23, 2022, among a sample of 2005 registered voters.