In an effort to avoid any future insider trading scandals, a new measure has reportedly been proposed in the House of Representatives that would forbid members of Congress from holding and trading individual stocks.
Representatives Alexandria Ocasio-Cortez, Matt Gaetz, Brian Fitzpatrick, and Raja Krishnamoorthi filed the bill, dubbed the Bipartisan Restoring Faith in Government Act, which is supported by both Democrats and Republicans.
I'm proud to work with my colleagues Rep. @AOC, @RepBrianFitz, and @CongressmanRaja on this important legislation!
Members of Congress are spending their time trading futures instead of securing the future of our fellow Americans. We cannot allow the Swamp to prioritize… pic.twitter.com/KGcyYfWi3D
— Rep. Matt Gaetz (@RepMattGaetz) May 2, 2023
According to the proposed legislation, legislators would be obligated to deposit their stock holdings in blind trusts, which would be run by independent trustees who would be in charge of all investment choices.
A clause in the measure would forbid MPs from sitting on the boards of publicly traded firms.
Given the interests of many members of Congress, the measure will probably encounter opposition.
Members are permitted to purchase and sell stocks under the 2012 STOCK Act as long as they don’t engage in insider trading and declare their transactions.
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