WASHINGTON, D.C. — The U.S. House narrowly passed a bill Wednesday that would bar members, their spouses and dependent children from buying new stocks in publicly traded companies while they serve in Congress.
However, a controversial voter ID proposal — which was added to the bill to appease conservative hardliners — will likely complicate its chances at becoming law.
The “Stop Insider Trading Act” cleared the House Wednesday, along with several other major pieces of legislation.
“The Stop Insider Trading Act, that bans lawmakers from trading and buying individual stocks and from abusing their office for financial gain.”
The bill would allow lawmakers to keep private stocks they owned before taking office — and still invest in certain funds — but it prevents lawmakers, their spouses and dependent children from buying new stocks of publicly traded companies while in Congress.
“There’s been too many horror stories of members going from a briefing to their stockbroker in and trading big,” said Rep. Nick Langworthy, R-N.Y., after he voted for the bill. “I mean, if you have what you have when you come here, that’s one thing. But you shouldn’t be getting news in a classified briefing and running out and buying. That’s, I think, absolutely a betrayal of public trust.”
But most House Democrats opposed the bill, arguing it does not go far enough and because of controversial voter ID and proof of citizenship provisions tacked onto the Stop Insider Trading Act.
“Do you think that stymies good legislation, or decent legislation to try and tackle a serious issue by attaching what some might call a poison pill?”
“The Senate can always pass their own version of it and send it back here. They can do whatever they want to do,” said Langworthy.
The House-passed “Stop Insider Trading Act” now faces an uncertain future in the Senate.
“The American people deserve to know that their elected officials are focused on bringing down costs, not building their own personal wealth. While I appreciate that House Republicans are coming to the table on this issue, their bill is a half-measure that would not truly ban congressional stock trading or help restore the public’s trust in Congress, and they are using it as a way to pass completely unrelated and divisive legislation. My bipartisan and bicameral Restore Trust in Congress Act would actually ban members from both owning and trading stocks entirely, so the public could rest assured that their elected officials aren’t profiting from insider,” said Sen. Kirsten Gillibrand, D-N.Y., in a statement on whether she supports the bill that cleared the House Wednesday.
In January, Sen. Gillibrand introduced her bipartisan bill that would go further — banning members and their immediate families from trading and owning individual stocks.
“Stop members of Congress and their immediate families from owning, buying or selling individual stocks,” Sen. Gillibrand said in January. “There’s too much corruption in Washington right now. If you want to go and make money and have a big stock portfolio, do a different job.”
Gillibrand’s bill is one of several proposals to curb or prevent stock trading among members.
“Our constituents deserve to have complete confidence that their federal elected officials are working to improve American’s lives, not their own personal financial interests. That’s why I worked to pass a bipartisan bill to ban member stock trading out of the Homeland Security and Governmental Affairs Committee earlier this Congress. The bill we passed is stronger and more comprehensive than the House version, and would require divestment of securities, commodities and digital assets while holding the President to the same standards. While I’m eager to work with anyone on a path forward that would finally ban member stock trading, unfortunately the House has taken a partisan approach by attaching a dangerous provision to their bill that directly attacks our constitutional right to vote. I will oppose the SAVE Act and any efforts that jeopardize Americans’ access to the ballot box,” said Sen. Gary Peters, D-Mich., in a statement to WZMQ 19 News.
Peters’ Halting Ownership and Non-Ethical Stock Transactions (HONEST) Act would immediately ban Members of Congress, the President, and Vice President from buying stocks and other covered investments and prohibit them from selling stocks 90 days after enactment. It also requires members of Congress, the President and the Vice President to divest from all covered investments, starting at the beginning of their next term in office.
