Democrats Unveil Bill to Restrict Trading by Lawmakers, Presidents
Billy House Bloomberg
House Speaker Nancy Pelosi at a press conference on Capitol Hill, August 12, 2022. (photo: Sarah Silbiger/The Washington Post) Democrats Unveil Bill to Restrict Trading by Lawmakers, Presidents
Billy House BloombergThe bill, titled the “Combatting Financial Conflicts of Interest in Government Act,” could be introduced on Wednesday, when the House is in session. But when, or if, the bill will head to the floor for a vote was unclear, as potential action this week become muddled earlier on Tuesday amid ongoing differences within the Democratic ranks.
A spokesperson for Majority Leader Steny Hoyer said late Tuesday that more details would be released as they become available.
The bill would also apply to the spouses and dependent children of the listed officials, as indicated last week to lawmakers in an outline by House Administration Chair Zoe Lofgren, a California Democrat.
The bill’s trade and ownership restrictions cover commodities, futures, cryptocurrency or other digital assets. Also covered are interests acquired through derivatives, including options.
The legislation would require public officials to divest current holdings or put them in a blind trust. It would also tighten disclosure requirements and increase penalties for violations.
The “supervising ethics office” for each government branch would be called on to issue regulations implementing the the bill’s provisions within 180 days of the bill’s enactment.
Earlier: Bill to Ban Lawmaker Stock Trades Readied for Release in House
A group of senators is working on their own version of the legislation. Even if the House does act on its bill, there’s little chance of Congress taking any final action before the midterm elections.
But differences have emerged within the House Democratic leadership over the measures, including over the size of fines and or other penalties for violations of any new laws. Whether those disagreements have been ironed out in this text was unclear late Tuesday night.
Congressional leaders have faced intensifying calls in the past year to adopt new rules governing lawmakers’ financial activities. A New York Times analysis of disclosure forms published earlier this month found that from 2019 to 2021, almost 100 senators or representatives reported that they or an immediate family member traded a stock or other financial asset that had some overlap with issues before congressional committees on which they served.
A key point of debate has been whether to include family members in any ban on trading, with some attention falling on House Speaker Nancy Pelosi’s husband, Paul Pelosi. Some of his recent transactions, while legal, helped to draw renewed attention to the current law governing lawmakers’ trades that critics say should be changed. A Pelosi spokesperson didn’t immediately respond to requests for comment on the bill.