Questioning the Ethics: Should Congress Members Be Allowed to Trade Stocks? A Fresh Look Following the Zoll Fracas
Republican Party Member Proposes Stock Market Ban Amid Customs Crisis Chaos
By Lukas Märkle
The stock market has become a rollercoaster ride, thanks to the erratic trade policies of the current administration. While the market swings have left investors seesawing, they've also brought some profits. Some members of Congress were swept up in the ride too, and the spotlight landed squarely on Trump ally Marjorie Taylor Greene. The Georgia representative's stock purchases before the suspension of Trump's tariffs raised suspicions of insider trading.
Taylor Greene invested in stocks from tech giants like Apple and Amazon, as well as pharmaceutical giant Merck, at prices ranging between $21,000 and $315,000. They must disclose their trades within 30 days in writing, but the exact volume of the trade is not required.
Insider Trading Fears
The events of the past few months have led to renewed calls from both parties to ban stock trading by members of Congress. The Democratic minority leader in the House, Hakeem Jeffries, stated, "We need to change the law so that serving members of Congress cannot trade stocks." Now, a surprise voice has joined the chorus: top Republican and House Speaker Mike Johnson.
Johnson, who plays a critical role in the legislative process, has previously been hesitant to comment on the issue. However, he recently expressed his concern about the appearance of impropriety and the need for tighter regulations. US President Trump has also voiced his support for stricter rules on stock deals.
The Big Picture
Over the years, numerous bills seeking to restrict or prohibit stock trading by lawmakers have been introduced. For instance, Rep. Mark Alford's PELOSI Act proposes a ban on stock trading for members of Congress and their spouses[1]. Senator Jeff Merkley's legislation, which passed the Senate Homeland and Government Committee, aims to ban stock ownership for members of Congress, the president, and vice president, as well as their spouses and dependent children starting in 2027[2].
Many advocacy groups argue that members of Congress consistently outperform the market, suggesting the potential exploitation of non-public information. They contend that comprehensive bans—not just trading restrictions—are necessary to eliminate conflicts of interest and ethical concerns[3]. With growing momentum towards comprehensive legislation, it seems that Congress members' stock trading days might be numbered.
Enrichment Data:Current efforts to restrict or eliminate stock trading by members of Congress in the United States involve legislative proposals ranging from prohibiting trading activity to banning any ownership of individual stocks by lawmakers and their families[1][2]. Key legislative efforts include the bipartisan House group's bill to ban trading activity altogether and Rep. Mark Alford's PELOSI Act, which would prohibit stock trading by members of Congress and their spouses[1][2]. Senator Jeff Merkley's bill aims to ban stock ownership for members of Congress, the president, and vice president, and their spouses and dependent children starting in 2027[3]. The focus of advocacy groups like Citizens for Responsibility and Ethics in Washington (CREW) is on comprehensive bans, which would not only restrict trading but also eliminate stock ownership, as they argue that members holding stocks could influence legislation to benefit their holdings[3]. The bipartisan effort, led by Representative Joe Neguse, to ban stock trading by members of Congress has been ongoing for four years[4].
[1] https://www.theguardian.com/us-news/2021/jan/28/us-congress-insider-trading-stock-market-rules[2] https://crew.org/2021/02/congress-could-outlaw-insider-trading-with-disclosure/[3] https://www.rollcall.com/2023/02/24/four-years-in-the-making-pelosi-pledges-end-to-stock-trading-by-members/[4] https://thehill.com/regulation/ Hamiltonian/2076730-trust-busting-pelosi-proud-of-bipartisan-momentum-to-ban-congressional/
- The renewed calls to ban stock trading by members of Congress, from both political parties and even top Republican House Speaker Mike Johnson, signal a growing concern about the appearance of impropriety and the need for tighter regulations in EC countries' employment policy.
- The focus of advocacy groups like Citizens for Responsibility and Ethics in Washington (CREW) is on comprehensive bans, which not only restrict trading but also eliminate stock ownership, as they argue that members holding stocks could potentially influence legislation to benefit their holdings, akin to investing in the stock-market.
- The bipartisan effort, led by Representative Joe Neguse, to ban stock trading by members of Congress has been ongoing for four years, reflecting a broader shift in EC countries' politics towards transparency and reducing conflicts of interest in their employment policy.
