The extreme left and right wings of American politics have surprisingly come together to support a bill that restricts members of Congress from trading or owning stocks.
This unexpected collaboration is spearheaded by Socialist Rep. Alexandria Ocasio-Cortez (D-NY) and Republican Rep. Matt Gaetz (R-Fla.). The bill, called H.R. 3003, is also co-sponsored by moderate Republican Rep. Brian Fitzpatrick (R-Pa.) and progressive Democrat Rep. Raja Krishnamoorthi (D-Ill.). The proposed legislation aims to prevent congressional members, their spouses, and dependents from engaging in stock trading.
According to the lawmakers, the fact that members from the Progressive Caucus, Freedom Caucus, and Bipartisan Problem Solvers Caucus, representing the entire political spectrum, have come together to support the bill should send a strong message to America.
In a joint statement, Fitzpatrick and the other lawmakers expressed their belief that issues that unite the country should be prioritized, and that trust in the government must be restored.
BREAKING: US Representatives AOC introduces bill to ban Congress from trading and owning stocks. pic.twitter.com/fLdZFcPhuo
— Genevieve Roch-Decter, CFA (@GRDecter) May 2, 2023
Ocasio-Cortez emphasized that when members of Congress have access to classified information, they should not be trading in the stock market. She believes that this restriction is straightforward and necessary.
Gaetz echoed this sentiment, stating that members of Congress should not be prioritizing investing in stocks over investing in the country. He believes that Congress should focus its efforts on securing the future of fellow Americans, rather than spending time trading futures.
The proposed legislation that Reps. Alexandria Ocasio-Cortez (D-NY) and Matt Gaetz (R-Fla.) are sponsoring to restrict members of Congress from owning or trading stocks appears to be the most stringent ban on trading proposed so far.
Another bill, the TRUST in Congress Act, was introduced by Reps. Abigail Spanberger (D-Va.) and Chip Roy (R-Texas), which would require lawmakers, their spouses, and dependents to place investments into blind trusts until they leave office.
According to a spokesman for Spanberger, the TRUST in Congress Act has gained momentum with over 55 bipartisan supporters. Fitzpatrick and Gaetz have also signed on to this bill, while AOC has not.
Congress Members Face Strictest Trading Ban with AOC and Gaetz Bill
In March, some members of Congress divested their bank stocks in the aftermath of the collapse of Silicon Valley Bank and First Republic Bank. Among those who divested were Rep. Ro Khanna (D-Calif.), who co-sponsors the TRUST in Congress Act. Following the incident, Spanberger’s office received more interest from lawmakers who want to join the push for the TRUST in Congress Act.
According to the political investment tracker Capitol Trades, Rep. Dan Goldman (D-NY) sold First Republic Bank shares worth between $1,000 and $15,000 on March 15. The congressman is one of the richest individuals in Congress and has carried out more than 500 transactions, amounting to a value ranging from $10 million to $31 million.
However, Goldman’s spokesman claims that the congressman was not aware of the trades and placed his investments in a blind trust managed by an undisclosed investment adviser after assuming office. Goldman supports legislation to ban stock trading by members of Congress and is evaluating different proposals to that end.
Rep. Nancy Pelosi (D-Calif.), another wealthy member of Congress, holds a substantial portfolio of tech stocks with her husband, and her net worth has exceeded $100 million since taking office. Sen. Josh Hawley (R-Mo.) introduced the PELOSI Act to prohibit members of Congress and their spouses from trading stocks while in office and enable them to place their holdings into blind trusts.
In January, Hawley said that politicians in Washington had taken advantage of the economic system, earning profits for themselves at the expense of the American people. He added that members of Congress are tasked with overseeing the same companies in which they invest, yet they repeatedly buy and sell stocks, consistently outperforming the market.
In 2012, the STOCK Act prohibited insider trading by members of Congress. However, multiple reports of possible conflicts of interest related to stock holdings have prompted bipartisan calls for stronger regulations.
