U.S. Senator Steve Daines and Representative Matt Rosendale this week introduced a bipartisan, bicameral bill to ban Members of Congress and their spouses from owning and trading individual stocks. The bill, the “Bipartisan Ban on Congressional Stock Ownership Act of 2022,” was introduced by Daines and Senator Elizabeth Warren in the U.S. Senate and Rosendale and Congresswoman Pramila Jayapal in the U.S. House. This is the first bipartisan effort on this issue in the Senate and the proposal goes farther than others that have been introduced.
“Congress is here to serve, not be served. The American people should have faith in that fact,”Daines said. “Members shouldn’t be able to make legislative decisions or use their platform and influence to benefit themselves personally, which is why it should be no question that owning and trading stocks should be banned. I’m glad to work across the aisle with Senator Warren on a bipartisan compromise to help restore the American people’s faith in Congress and hold Members accountable to the folks they’re serving.”
“I’m proud to introduce the bicameral Bipartisan Ban on Congressional Stock Ownership Act with Congresswoman Jayapal, Senator Daines, and Senator Warren. Banning insider trading by Members of Congress is a critical step to restoring public confidence in our institutions and ensuring the interests of the American people come before personal financial gain,” said Representative Rosendale. “It’s unacceptable that so many career politicians abuse their office to enrich themselves. Public servants must be held to a higher standard and our bill will help prevent such conflicts of interest.”
Both Daines and Warren sit on the Senate Committee on Finance which has jurisdiction over the bill.
The bipartisan bill does the following:
- Bans Members of Congress and their spouses from trading or owning any individual stock, bond, commodity, future, or other form of security, including an interest in a hedge fund, a derivative, an option, or other complex investment vehicle. Banning ownership includes investments held in a blind trust.
- Members have 180 days to comply with the bill, five years to divest from complex investment vehicles, such as private equity or venture capital funds, and would be subject to a fine of up to $50,000 per violation.