Introduction to the Proposed Bill
In a rare moment of bipartisanship that might make you believe unicorns are galloping through Congress, lawmakers from both sides are rallying behind a new proposal that could put an end to stock trading by members of Congress. On May 2, Democratic Representatives Alexandria Ocasio-Cortez (AOC) and Raja Krishnamoorthi teamed up with Republican Representatives Brian Fitzpatrick and Matt Gaetz to introduce the Bipartisan Restoring Faith in Government Act.
What’s in the Bill?
This legislation aims to amend existing U.S. laws to prohibit members of Congress—and their spouses and dependents—from trading or even owning certain financial instruments. We’re talking about stocks, securities futures, commodities, and potentially, cryptocurrencies. Whether it’s Bitcoin or your neighbor’s weird coin collection, if it’s seen as an investment, it might be on the chopping block.
The 90-Day Sell-Off
Once this bill sees the light of day, members currently holding these assets would have to sell them or put them into a blind trust within 90 days. Not complying with this rule could land lawmakers in hot water, with civil charges from the U.S. Attorney General and potential fines that could reach up to a whopping $50,000. Talk about a steep price for financial freedom!
Voices of Concern
“The ability to individually trade stock erodes the public’s trust in government,” stated AOC, reflecting many Americans’ frustrations. The worry is real: when lawmakers have insider knowledge that can affect market trends, does it make sense for them to be trading stocks? It’s a slippery slope, much like trying to water-ski on a banana peel.
The Experts’ Take
Critics argue that the penalties for not reporting investments are currently weak. For instance, Representative Lois Frankel’s divestment from First Republic Bank followed by an investment in JPMorgan has raised eyebrows and sparked discussions about insider trading. It turns out, Congress isn’t always the best at managing their own ethics, much to the dismay of the public.
Challenges in Implementation
Despite previous proposals aiming to enhance the Stop Trading on Congressional Knowledge Act (STOCK Act), lawmakers have historically met resistance. To top it off, the inclusion of digital assets in this new bill highlights the ongoing confusion around their classification—something that not even the U.S. Securities and Exchange Commission can definitively clarify.
What’s Next?
As the nation waits with bated breath, it remains uncertain whether this bipartisan bill will garner enough votes in both the House and Senate to land on President Joe Biden’s desk. Will this be the moment we see Congress step up their ethical game? Only time will tell—stay tuned!
