Gillibrand and Hawley’s Bill Blocks Lawmakers and Executives from Stock Trading
Senators Introduce Landmark Bill to Ban Stock Trading for Government Officials
Sen. Kirstin Gillibrand (D-N.Y.) and Sen. Josh Hawley (R-Mo.) are taking a bold step to address concerns about government officials owning stocks while in office. They have co-sponsored a bipartisan bill, named the Ban Stock Trading for Government Officials Act, which aims to heavily regulate investing by members of government.
The act, announced on Wednesday, prohibits the buying and selling of stocks, including those held in blind trusts. It also increases penalties for violating financial disclosure rules by lawmakers, executive branch officials, and their family members.
This is not the first time Ms. Gillibrand and Mr. Hawley have shown support for regulating government officials’ financial activities. Ms. Gillibrand played a key role in passing the Stop Trading on Congressional Knowledge (STOCK) Act in 2012, while Mr. Hawley has proposed three bills in recent years to increase regulations on stock trading among members of Congress and the executive branch.
Ms. Gillibrand expressed her enthusiasm for the bill, stating that it is the most substantive bipartisan effort to date. She added, ”I’m going to work hard alongside Senator Hawley to get it signed into law.”
This bipartisan effort comes at a time when concerns are rising about government members having an unfair advantage in the stock market due to their access to non-public information and the ability to shape laws and policies.
Several senators faced scrutiny for their stock trading activities during the COVID-19 pandemic. Some were found to have sold stocks in industries heavily impacted by the pandemic, while others purchased stocks in biotechnology and work-from-home technology companies that saw a surge in demand.
“Politicians and civil servants shouldn’t prioritize personal profit over the American public,” said Mr. Hawley. “Our bill is common sense: ban elected and executive branch officials from trading or holding stocks, and put the American public first.”
Proposed Penalties
The Ban Stock Trading for Government Officials Act includes various penalties for lawmakers and senior executive branch officials.
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- Members of Congress who violate the ban on stock trading face a penalty of at least 10 percent of the value of their prohibited investments.
- The bill also raises penalties for failures to disclose other transactions covered under the STOCK Act, such as bonds and commodities futures.
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