Proposed Legislation to Ban Congressional Stock Trading
Rep. Mark Alford proposed the PELOSI Act to ban congressional stock trading due to suspicions of insider trading. The bill would bar lawmakers and their spouses from owning individual stocks but allow investments in diversified mutual funds, ETFs, or US Treasury bonds. Violators would have to return gains and face fines. President Trump and Speaker Mike Johnson support the idea.
Key Points
- PELOSI Act proposed to ban congressional stock trading
- Lawmakers and spouses prohibited from owning individual stocks
- Investments allowed in mutual funds, ETFs, or US Treasury bonds
- Violators must return gains and face fines
- President Trump and Speaker Mike Johnson support the idea
Pros
- Higher standard of ethics for lawmakers
- Prevents potential insider trading and corruption
- Enhances public trust in government officials
Cons
- Restricts lawmakers' investment options
- May face challenges in enforcement and compliance