'Put the American public first': Senators introduce a bipartisan law to ban members of Congress and executive officials — including the president — from trading stocks

A new law has been proposed that would ban members of Congress and the federal executive branch — including the president — from trading stocks.

The bipartisan “Ban Stock Trading for Government Officials Act” was introduced by Sens. Kirsten Gillibrand (D-N.Y.) and Josh Hawley (R-Mo.) in late July.

Don't miss

• Commercial real estate has outperformed the S&P 500 over 25 years. Here's how to diversify your portfolio without the headache of being a landlord

• Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwinds

• Worried about the economy? Here are the best shock-proof assets for your portfolio. (They’re all outside of the stock market.)

It builds on the decade-old Stop Trading on Congressional Knowledge (STOCK) law, which is supposed to combat insider trading by members of Congress and their staff.

Breakdown of the bill

The new bill would bar Washington officials from owning or trading stocks, even in blind trusts.

It would also impose penalties of varying degrees against those found to break the rules.

They could also be subject to additional civil penalties in “extraordinary” cases or those that involve “substantial monetary value,” according to a joint press release from Gillibrand and Hawley.

Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here's how

Huge public support

Public support for a ban on stock trading among members of Congress is almost unanimous — with 86% in favor nationwide, according to a survey done by the University of Maryland’s Program for Public Consultation.

Hawley said the bill would “put the American public first” — but this rhetoric doesn’t appear to have swayed his colleagues in Congress.

Two bills on this matter — the TRUST in Congress Act and the PELOSI Act — have failed to move the needle this year, and it’s unclear if or when the Ban Stock Trading for Government Officials Act will be debated and voted on. More recently, Sens. Jon Ossoff and Mark Kelly introduced another new piece of legislation, the Ban Congressional Trading Act, which would require all members of Congress, their spouses, and dependent children place their stocks into a blind trust or divest their holdings.

What to read next

• The US dollar has lost 98% of its purchasing power since 1971 — invest in this stable asset before you lose your retirement fund

• How can I stop the pain and make money in this nightmarish market? Here's 1 simple way you can protect your nest egg

• Jeff Bezos and Oprah Winfrey invest in this asset to keep their wealth safe — you may want to do the same in 2023

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.