- US Senators Kirsten Gillibrand and Josh Hawley have introduced the “Ban Stock Trading for Government Officials Act,” aiming to prevent stock trading and ownership by high-ranking government officials and their families, with the intention to avoid potential conflicts of interest.
- If approved, the act would increase penalties for failure to report stock transactions and add greater transparency to the financial activities of government officials.
In a game-changing development for the US financial landscape, Senators Kirsten Gillibrand (D-NY) and Josh Hawley (R-MO) are advocating for the “Ban Stock Trading for Government Officials Act.” This bill, if passed, could dramatically reshape how high-ranking government personnel engage with the stock market.
JUST IN: 🇺🇸 US Senators introduce bill to ban the President, VP, and Congress members from owning & trading stocks.
— Watcher.Guru (@WatcherGuru) July 26, 2023
A Bill for Transparency and Accountability
Under the proposed legislation, the act of trading stocks by members of Congress, the President, Vice President, senior executive branch officials, and their relatives would be forbidden. Additionally, the use of blind trusts, often used to avoid conflicts of interest, would also be prohibited. This ban targets a substantial range of financial activities with the ultimate aim of fostering transparency, reducing potential corruption, and enhancing the integrity of government officials.
Penalties for executive branch officials who violate these trading restrictions will be implemented under the new act. This also involves officials reporting any federal benefits they receive, including but not limited to, grants, contracts, and loans, with the exception of salary or tax refunds. The aim of these new requirements is to ensure that elected leaders prioritize public interest over personal financial gain.
Building on the ten-year-old STOCK Act, the legislation seeks to tackle insider trading by members of Congress and their staff. According to the proposal, penalties for non-compliance with the STOCK Act’s transaction reporting will be increased from $200 to $500. The act also introduces additional penalties in extraordinary cases or those involving significant monetary value.
The future timeline for the bill remains uncertain, with no concrete dates for committee consideration or Senate debate. However, it’s worth noting that a Morning Consult/Politico poll indicated substantial public support for such measures, with 63% of Americans in favor of banning stock trading by high-ranking government officials and their families.
This proposal arrives on the heels of new regulations announced by the Federal Reserve that restrict its officials from owning individual stocks, bonds, and cryptocurrencies. These rules, set to take effect in May, reflect a growing trend towards increased transparency and accountability in government and financial institutions. The broader implications of these developments for the crypto market remain to be seen.
