A bipartisan group of House lawmakers unveiled legislation Wednesday that would ban stock trading by members of Congress and their close family members after years of unsuccessful attempts to put such restrictions into place.
“We have reached a tipping point where pressure outside the building is becoming too much for leadership to deny,” Rep. Seth Magaziner (D-R.I.) said during a news conference at the Capitol on Wednesday. “I cannot even describe when this issue comes up at town halls and events across the country, people go nuts.”
The “Restore Trust in Congress Act,” which is being backed by some of the most conservative members of the House and some of its most liberal, combines several past proposals that have attempted to stop members of Congress from trading stocks.
Rep. Chip Roy (R-Texas) said the bill’s 16 cosponsors took the “best elements” of previous proposals to craft the latest iteration.
“We’re united and it has the best elements of each of the bills,” he said. “It is time for Congress to act.”
“If you want a day trade, leave Congress. It’s that simple,” Roy added.
Under the drafted legislation, lawmakers found to have violated the proposal, if it becomes law, would face financial penalties equal to 10 percent of the value of their investment and would be forced to relinquish any earnings from the violation.
Current members would have 180 days from enactment to divest their holdings or put them into a blind trust. Newly-elected members would have 90 days to come into compliance. It would apply to members, their spouses and any dependent children.
The bill would have to pass the House and win approval from the Senate and White House before it could go into effect.
“We’re going to get a vote,” Roy said of the House effort. “This is a nondebatable proposition.”
The measure only applies to members of Congress, so it wouldn’t affect people serving in the president’s administration or in the judiciary.
Members of the House and Senate have spent years highlighting the potential conflicts that can arise when lawmakers make stock trades while having insight into issues on Capitol Hill that affect stock prices.
“Look, this is a message to our colleagues: You may have traded up till now, and you may have operated within the confines of the law and the rules and the regulations,” Rep. Raja Krishnamoorthi (D-Ill.) said. “We’re not going to judge what you did before now, but now that this bill is going to come to the floor — and we’re going to make sure of that — it’s your chance to get right with the American people because at the end of the day, Congress is not a casino.”
Lawmakers at Wednesday’s press conference suggested that they could pursue a discharge petition by the end of the month, which would pave the way for a floor vote, if leaders don’t act quickly to bring up the bill.
“We are very hopeful that this will be brought to floor to the floor in regular order and we look forward collectively to deliver this one to the American people,” Rep. Anna Paulina Luna (R-Fla.) said. “How could you ever be expected to represent your constituents when you’re clearly worried about your pocketbook?”
