Senator Josh Hawley, a Republican from Missouri, is once again putting forward legislation aimed at prohibiting members of Congress and their spouses from engaging in stock trading while serving in office.
This initiative, known as the "PELOSI Act," was initially introduced by Hawley in 2023 but did not advance under President Joe Biden's administration. However, the proposal has since garnered bipartisan support, with President Donald Trump expressing his willingness to endorse such a measure. "Members of Congress should be fighting for the people they were elected to servenot day trading at the expense of their constituents," Hawley stated to Fox News Digital.
As reported by Fox News, the legislation seeks to address concerns about lawmakers potentially profiting from insider information unavailable to the public. Hawley emphasized the need to "ban all members of Congress from trading and holding stocks and restore Americans trust in our nations legislative body." The proposed ban would restrict lawmakers and their spouses from holding, purchasing, or selling stocks during their tenure. However, they would still be permitted to invest in diversified mutual funds, exchange-traded funds, or U.S. Treasury bonds.
Should the legislation pass, current lawmakers would be given a 180-day window to comply, while newly elected officials would have the same timeframe upon taking office. Any lawmaker found violating the ban would be required to surrender profits from wrongful transactions to the U.S. Treasury Department. Additionally, the House or Senate ethics committees could impose fines amounting to 10% of each wrongful transaction.
President Trump has voiced his support for the ban, citing concerns over insider trading. In an interview with Time Magazine, he remarked, "I watched Nancy Pelosi get rich through insider information, and I would be okay with it. If they send that to me, I would do it." When pressed on whether he would sign such a ban, Trump affirmed, "Absolutely."
The proposal has also found backing among Democrats in the House of Representatives. House Minority Leader Hakeem Jeffries recently expressed his support for the initiative, signaling a growing consensus across party lines. This development underscores a shared recognition of the need for greater transparency and accountability within the legislative branch, reflecting a commitment to restoring public trust in government institutions.
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