Senator Josh Hawley (R-MO) is renewing his push to ban congressional lawmakers and their spouses from abusing their positions to partake in insider trading.
Insider trading is illegal for the rest of the population, but members of Congress get a free pass to use inside information while trading stocks.
This “loophole” has led to several lawmakers vastly increasing their wealth while serving in the House and Senate.
However, many have long argued that the practice creates conflicts of interest and ulterior motives for lawmakers who should be focused on best serving their constituents.
On Monday, Hawley is reintroducing legislation that would ban members of Congress and their spouses from trading stocks while in office.
Hawley introduced the “PELOSI Act” in 2023.
The bill is named after Rep. Nancy Pelosi (D-CA), who has long been accused of insider trading.
However, it failed to make progress under former President Joe Biden’s administration.
The proposal has since gained popularity among lawmakers on both sides of the aisle.
Last week, President Donald Trump himself said that he would “absolutely” sign such a ban if it came to his desk.
In a statement, Hawley said:
“Members of Congress should be fighting for the people they were elected to serve, not day trading at the expense of their constituents.
“Americans have seen politician after politician turn a profit using information not available to the general public.
“It’s time we ban all members of Congress from trading and holding stocks and restore Americans’ trust in our nation’s legislative body,” he added.
Hawley’s ban would prohibit members of Congress and their spouses from holding, purchasing, or selling stocks for the duration of the lawmaker’s time in office.
Lawmakers would be allowed to invest in diversified mutual funds, exchange-traded funds, or U.S. Treasury bonds while in office.
If passed, current lawmakers would have 180 days to comply with the legislation.
Likewise, newly elected lawmakers must achieve compliance within 180 days of entering office.
Lawmakers who continue to make wrongful transactions under the law would be required to hand over any profits they made to the U.S. Treasury Department.
The House or Senate ethics committees could also impose a fine on such lawmakers, amounting to 10% of each wrongful transaction.
Trump endorsed banning trading for members of Congress in an interview with Time Magazine on Friday.
“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,” he said of a trading ban.
“You’ll sign it?” the reporter pressed.
“Absolutely,” Trump responded.
Democrats in the House of Representatives have also expressed support for a ban.
House Minority Leader Hakeem Jeffries (D-NY) threw his weight behind the proposal last week.
