WASHINGTON—A bipartisan group of senators on July 10 put forth a bill that would ban members of Congress and other elected officials from trading stocks.
Sens. Jeff Merkley (D-Ore.), Gary Peters (D-Mich.), Josh Hawley (R-Mo.), and Jon Ossoff (D-Ga.) announced that they had reached an agreement on the legislation.
“Members of Congress should not be playing the stock market while we legislate and while we have access to confidential and privileged information. This is long overdue. This is necessary,” Mr. Ossoff said at a press conference at the Capitol.
Mr. Merkley noted that members of Congress made more than $1 billion from stocks last year but that their portfolios consistently perform at higher-than-average rates.
“There are even investment funds that mimic the investments of members of Congress because of this phenomenon,” he said.
Mr. Merkley also raised concerns about possible conflicts of interest surrounding the lawmakers’ stock trading.
“The idea that you own a portfolio that concentrates on fossil fuels or renewable energy or bank stocks, or pharmaceuticals, and you are writing legislation, preparing amendments, or voting on bills that affect those investments” was an important factor, he said.
Mr. Hawley went a step further: “I don’t care if you don’t have so-called insider information or information not available to the public. Why should members of Congress be spending their time day-trading rather than focusing on the priorities that the American people sent us here to achieve and focus on?”
Mr. Peters, chair of the Homeland Security and Governmental Affairs Committee, said the legislation will be considered for markup by his panel on July 24, noting that this will be the first time a Senate committee has considered such legislation.
Concerns about insider influence in congressional stock trading are not new. In 2012, the STOCK Act was passed to curb insider trading among lawmakers by forcing them to disclose any trades over $1,000.
However, Ms. Spanberger’s letter noted that “recent investigations have found that 1 in 7 members violated the STOCK Act in the 117th Congress, 97 members traded stocks in companies impacted by their committee assignments from 2019 to 2021, and members outperformed the S&P 500 by 17.5 percent in 2022.”
The Epoch Times has reached out to Mr. Johnson’s office for comment.