U.S. Sen. Ashley Moody is co-sponsoring a measure that’s designed to end stock trading by members of Congress.
Moody, along with Democratic U.S. Sen. Kristen Gillibrand of New York, drafted the Senate bill, called the Restore Trust In Congress Act. In the House, U.S. Rep. Chip Roy, a Texas Republican, and U.S. Rep. Seth Magaziner, a Rhode Island Democrat, have introduced a companion bill.
The proposal would not only limit members of Congress from stock trading, but also prohibit their spouses and dependent children from investing. They would not be able to purchase, sell or hold those interests if the bill is approved.
The measures aim to reduce perceived conflicts of interest among congressional members and to limit the possibility of insider trading by leaders on Capitol Hill.
Gillibrand and Moody issued a joint statement on the measure.
“It is fundamental to our Republic that members of Congress are focused on our nation and its citizens’ well-being, not how they may financially profit from their positions. That is why we are proud to introduce this commonsense bill to ban members of Congress from owning or trading individual stocks. We will continue to fight tirelessly to make sure it becomes law,” the joint statement said.
Moody’s bill would also ban qualified blind trusts. It would also require covered investments to be divested within a specified compliance period.
The bill would still allow members of Congress to maintain widely held investment funds that are diversified and publicly traded, U.S. Treasury bills, notes or bonds, compensation received by a spouse or children from their employer, small-business concerns, liability companies, and real estate where they reside.
There are 124 co-sponsors in the lower chamber. But a competing bill is also moving through the House that also seeks to prevent insider trading while not being as restrictive as Moody’s bill.
The House Administration Committee Wednesday approved a measure by the Chair of the panel, Republican U.S. Rep. Bryan Steil of Wisconsin, that would allow congressional members to hold on to some of their investment portfolios.
The Stop Insider Trading Act would allow members of Congress to keep stocks they’re already invested in, but would prevent them from buying new ones, essentially providing a grandfather clause. The House panel approved that measure, but support was split among party lines, with Democrats opposing it.
