The bipartisan push for a congressional ban on stock trading has intensified despite the lack of a clear roadmap. Lawmakers at the House Administration Committee hearing on November 19 debated how to strengthen and reform the 2012 Stop Trading on Congressional Knowledge (STOCK) Act.
David Savickas, vice president of policy and government affairs at the Taxpayers Protection Alliance, said during the Wednesday hearing that the framework in the law has proved sorely lacking. He noted that the STOCK Act does not prevent conflicted trading by members of Congress but requires them to report when and if they trade stocks.
The STOCK Act was passed in 2012 to prohibit members of Congress from using nonpublic information for private profit. Meanwhile, the House Administration Committee hearing put the issue that has been brewing on Capitol Hill for months back in the spotlight. The recent government shutdown derailed much of congressional action.
Savickas notes most Congress members breach the STOCK Act
Dan Savickas noted that most members of Congress do not report their stock trades as mandated by the STOCK Act of 2012. He further noted that even when they do, many of them report way past the mandated time periods with little to no consequences so far.
Lawmakers also aired additional grievances, arguing that there is a need for updates to the reporting and enforcement requirements in the STOCK Act. They also suggested a separate ban on members owning individual stock.
However, the lawmakers noted that although proposals to implement such a ban have previously been presented at various points, most have mainly been stalled. For instance, in September, Reps. Chip Roy (R-Texas-21) and Seth Magaziner (D-RI) presented a bill prohibiting lawmakers, their spouses, and dependent children from owning, buying, or selling individual stocks.
The Restore Trust in Congress Act (H.R. 5106) also prohibits them from trading securities, commodities, or futures, with a few exceptions. The bill further requires current members of Congress to divest from all covered assets at fair market value within 180 days and incoming members to do so within 90 days of taking office.
House Democrats and Republicans, including Reps. Brian Fitzpatrick (R-Pa), Alexandria Ocasio-Cortez (D-N.Y.), Tim Burchett (R-Tenn.), Pramila Jayapal (D-Wash.), and Anna Luna (R-Fla.) have backed the bill. However, no action has been taken since it was referred to the House Administration Committee.
Magaziner urges Speaker Johnson to present the bill for a vote
Seth Magaziner (D-RI) urged House of Representatives Speaker Mike Johnson to bring the bill to the floor as soon as possible for a vote. He pointed out that the American people have made it clear that hearings alone are not enough. Magaziner believes the bipartisan bill should be enacted to ban stock trading among Congress members once and for all.
The Citizens for Responsibility and Ethics in Washington, along with nine other organizations, has also written a letter to House Administration Committee Chair Bryan Steil (R-Wis.) and ranking member Joe Morelle (D-N.Y.), urging the panel to hold a special meeting to discuss the bill.
Rep Anna Luna (R-Fla.) also said if the House Committee does not announce it is taking action on the bill by Friday (November 21), she will introduce a discharge petition forcing floor action on the bill after the Thanksgiving break.
“I think there’s a lot of self-interested narcissists …running Washington that want to get rich while the American people suffer, and that’s why you’re seeing such strong opposition against this. So, I’m calling out the bulls—, and I really don’t care who I piss off.”
-Anna Luna, Congresswoman for Florida
However, Luna pointed out that lawmakers in the upper chamber may not support the bill even if it passes the House. She believes the bill will not reach the president or be signed into law with any consequence. Burchett does not see the bill passing either, although he says he is waiting to be proven wrong.
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