Summary
• Two US Senators are proposing a bill to ban stock trading for Presidents and Congress.
• The “Ban Stock Trading for Government Officials Act” contains penalties for officials who go against the proposal.
• The bill is an addition to the STOCK Act passed in 2012, which emphasizes reporting requirements and securities laws that halt trading on material non-public information.
Senators Propose Bill to Ban President and Congress From Stock Trading
Two U.S. senators are proposing a bill to prohibit stock trading for Presidents and Congress members from participating in stock trading. According to the “Ban Stock Trading for Government Officials Act,” failure to comply with the regulations could warrant penalties. This proposed legislation would include Presidents, Vice Presidents, and Senior executive branch officials as well as members of Congress.
Regulations of the Proposed Bill
The proposed bill contains several provisions and propositions intended to regulate stock trading amongst government officials. Specifically, government officials will be required to report grants, contracts, loans, and any form of payment or benefits received that fall outside of salaries, tax refunds, or compensation. Furthermore, these regulations would bring more transparency to the market while also championing accountability amongst government officials—potentially curbing potential conflicts that may arise as a result of improper use of insider knowledge or preferential treatment when it comes to stock trading activities by government figures.
Relation To Previous Regulations
The proposed legislation builds upon existing regulations such as the STOCK Act (Stop Trading on Congressional Knowledge) passed in 2012 which was brought about after media publications criticized stock trading activities by members of Congress at the time. The STOCK Act focuses on expanding existing reporting requirements for securities transactions enacted since 1978 by members of Congress along with senior federal officials while still subjecting them all U.S securities laws that prevent them from using material non-public information when conducting trades within their portfolios.
Conclusion
Overall this new bill has been proposed with good intentions; aiming towards providing transparency within a historically opaque system while also preventing abuse caused by privileged access or misuse of confidential information due to one’s place in public office. In this way Senator Gillibrand is right—sunlight really is the best disinfectant!