Treasury Secretary Scott Bessent has raised alarms over the substantial stock market gains achieved by certain members of Congress, advocating for a prohibition on individual stock trades.
In a conversation with Bloomberg, Bessent, a prominent figure in the Trump administration, underscored the legitimacy of public concern regarding these financial activities.
According to Western Journal, Bessent remarked, "I am going to start pushing for a single stock trading ban, because it is the credibility of the House and the Senate that you look at some of these eye-popping returns."
He highlighted the impressive returns of California Democratic Rep. Nancy Pelosi and Oregon Democratic Sen. Ron Wyden, noting, "Every hedge fund would be jealous of them." As a former hedge fund manager himself, Bessent's insights carry significant weight.
Bessent further emphasized the ethical implications, stating, "And you know, the American people deserve better than this. People shouldnt come to Washington to get rich." He argued that such financial activities erode trust in the political system, adding, "They should come to serve the American people, and it brings down trust in the system because, I can tell you, that if any private citizen traded this way, the SEC would be knocking on their door."
Despite the introduction of several legislative proposals aimed at regulating congressional stock trades, Bessent expressed skepticism, noting the absence of a "perfect bill." He reiterated the detrimental impact of substantial stock profits on the integrity of Congress, stating, "The House and the Senate, theyre supposed to be working for the American people, their constituents. Theyre supposed to be making law. And they shouldnt be trading every day."
He refrained from naming individuals but pointed out that one congressional member executed between 1,200 and 1,300 trades two years ago, a volume surpassing that of his own hedge fund.
President Donald Trump has previously indicated his support for a ban on individual stock trading by congressional members. In an April interview with Time Magazine, Trump remarked, "Well, I watched Nancy Pelosi get rich through insider information, and I would be OK with it. If they send that to me, I would do it," affirming his willingness to sign such a ban into law.
The issue of congressional stock trading continues to spark debate, raising questions about the balance between public service and personal financial gain. As discussions unfold, the call for reform resonates with those advocating for greater transparency and accountability in government.
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