WASHINGTON, D.C.—Rep. Greg Stanton and Rep. Zach Nunn of Iowa have teamed up to introduce bipartisan legislation that would ban Members of Congress from trading or holding individual stocks.
Under the Prohibit Insider Trading Act, members found in violation would be subject to a civil fine of up to $50,000 and any profit earned from the trades would be returned to the American people through the U.S. Treasury.
“Americans need to know their elected leaders in Washington are making decisions based on what’s best for our country, not their own stock portfolios,” Stanton said. “Our common-sense, bipartisan legislation will put an end to corrupt insider trading and bring some transparency and integrity back to Congress.”
“I’ve prioritized service over self my entire life – first in the Air Force, then as a state legislator, and now as a member of Congress. The top priority of civil servants should be serving the American people, not making personal profit,” Nunn said. “I believe Iowans should have open, transparent, and honest representation without conflicts of interest getting in the way. This isn’t a partisan issue—this is a way to stop corruption in politics that has unfortunately become all too common.”
During the 117th Congress, 78 Members of Congress—both Democrats and Republicans—violated the current law, known as the STOCK Act, that requires public disclosure of trades within 45 days. According to polls, 75 percent of Americans, regardless of party, support banning Members of Congress from trading individual stocks.
Specifically, the Prohibit Insider Trading Act:
- Prohibits Members of Congress and their spouses from transacting in individual stocks, futures, options, commodities, and warrants while serving in office. Diversified mutual funds, diversified ETFs, Treasury bills, and any investment in the Thrift Savings Plan (TSP) is exempt.
- Mandates each Member submit to the supervising Ethics Committee a written certification of compliance within seven days after the beginning of any session of Congress.
- Ensures Members or their spouses forfeit any investment profits to the U.S. Treasury if they are found in violation of the law. Additionally, Members who violate the requirements lose the ability to deduct losses of those investments on their income taxes.
- Empowers the Ethics Committees to levy supplementary civil penalties up to $50,000 and make public any violations.
- Requires the supervising ethics office to conduct an audit of compliance by every Member of Congress every two years.
The full text of the bill can be found HERE.