Pelosi Faces Criticism For Proposal To Ban Lawmakers From Stock Trading

(Photo : Photo by Win McNamee/Getty Images)
White House Speaker Nancy Pelosi suggested that House Democrats were looking into passing a bill that would ban lawmakers from stock trading. The remarks have received criticism as many officials have been found to be violators of the STOCK Act.

White House Speaker Nancy Pelosi on Wednesday suggested that House Democrats were discussing ways to potentially impose policy proposals to ban lawmakers from any form of stock trading.

Pelosi said that she expected there could be action taken regarding the issue this year after finding consensus. The speaker's remarks were made during her weekly news conference where she was asked about the possibility of enacting a ban on lawmaker trading.

Stock Trading Ban on Lawmakers

The official said that they have tasked the House Administration Committee with the responsibility of reviewing the options that members are proposing. Later on, she added that they were moving forward with what the majority agreed upon.

Pelosi's comments come amid a growing bipartisan push by some members of Congress in support of bills that would ban lawmakers from purchasing and selling stocks while holding positions in office.

The House speaker asked the House Administration Committee in January to consider higher fines for members and aides who were found to violate existing stock trading laws. She also asked them to review member ban bills, as per CNN.

Pelosi said that she wanted the stock trading ban to be government-wide, citing that the third branch of government and the judiciary had no reporting process. The official added that the Supreme Court had no disclosure or reporting of stock transactions.

Previously, the House speaker was opposed to a ban on stock trades for members of Congress. But in recent weeks, she has become open to restrictions if members wanted such legislation to be passed. Last month, she also suggested that she had concerns about the gap in requirements of stock reporting between Congress and other lawmakers.

Fox Business reported that the official said she wanted to increase fines for violations of the current STOCK Act that could serve as a deterrent to rule breakers. The legislation, which was passed in 2012, makes it illegal for members of Congress and their families to profit from inside information. It also requires lawmakers to report stock trades to Congress within 45 days.

The STOCK Act

On Wednesday, Sen. Tommy Tuberville rejected proposals to ban members of Congress from trading stocks, arguing that the idea was "ridiculous." In a statement, the Alabama Republican said that with all of the rules, officials should just send robots up there because no one can do anything.

The official said that the proposal would further reduce the number of people who were willing to serve their country. A previous investigation found that 55 lawmakers failed to properly report their financial trades last year. They were mandated by the Stop Trading on Congressional Knowledge Act, which is the full name of the STOCK Act.

Back in 2021, Tuberville was one of the worst violators of the STOCK Act and he disclosed 132 stock trades weeks or months late with transactions totaling at least $894,000. A spokesperson for the lawmaker did not immediately return requests for comments on the issue. Some of the proposals affect lawmakers' spouses, children, and congressional staffers. Others are not as strict and only require members of Congress to put their stocks in a blind trust, Business Insider reported.