Banning Stock Trading for Elected Officials and Combating Insider Trading

Objective:
To enhance transparency, accountability, and public trust in government by preventing conflicts of interest through banning stock trading for members of Congress and the President during their terms in office, and extending this restriction to cover their immediate family members.


1. Scope of the Ban:

  • Who is Covered:
    • All elected members of Congress (House of Representatives and Senate).
    • The sitting President and Vice President.
  • Duration:
    • The stock trading ban is effective during their entire term in office.
    • The ban will continue for two years after leaving office to prevent unethical post-office influence.

2. Family Member Provisions:

  • Family Members Covered:
    • Immediate family members (spouses, children, parents, and siblings) of elected officials are also subject to insider trading regulations.
  • Audits and Monitoring:
    • Annual Audits will be conducted to monitor the financial activities of elected officials and their immediate family members to detect any potential insider trading violations.
    • Audits will be performed by an independent, non-partisan entity with full access to financial records.

3. Penalties for Violations:

  • For Elected Officials:
    • Immediate suspension from office for the duration of any investigation into insider trading.
    • If found guilty, forfeiture of office, monetary fines, and prison sentences proportional to the severity of the violation.
  • For Family Members:
    • Family members found guilty of insider trading will face heavy fines and potential criminal prosecution.
  • For Delayed Disclosure or Non-compliance:
    • Elected officials or their family members who fail to disclose financial holdings or impede audits will face additional penalties, including monetary fines or other legal consequences.

4. Transparency and Reporting:

  • Elected officials will be required to disclose their financial holdings to the public on a quarterly basis.
  • Reports will be made available on a public platform for citizen access, ensuring full transparency.

5. Ethical Oversight:

  • A special Ethics Oversight Committee will be established to:
    • Ensure compliance with the ban.
    • Review the results of audits and financial disclosures.
    • Take immediate action if violations are detected, in coordination with law enforcement agencies.

6. Public Accountability:

  • Public Whistleblower Protections will be enhanced, encouraging individuals to report suspected violations by elected officials or their family members without fear of retribution.

Rationale:

Elected officials have access to confidential information and policy decisions that can directly influence financial markets. By banning stock trading and closely regulating the financial activities of their immediate families, this policy aims to eliminate any potential conflicts of interest and increase public trust in government. Furthermore, a two-year post-office ban ensures that individuals cannot exploit knowledge gained during their term for personal financial gain after leaving office.

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This also needs to include any staffers and their families that have intimate knowledge of legislation being passed

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Fortunately There is already a bill in progress to address this.

Senator Jon Ossoff (D-GA) is leading a bipartisan effort to ban members of Congress from trading stocks through the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act. This legislation, co-sponsored by Senators Jeff Merkley (D-OR), Josh Hawley (R-MO), and Gary Peters (D-MI), prohibits Congress members, along with the President, Vice President, and their families, from owning or trading individual stocks while in office. The bill requires divestment of all covered assets by 2027 and imposes penalties for violations. This effort addresses concerns over potential conflicts of interest and aims to restore public trust by ensuring that elected officials prioritize the public’s interests over personal financial gains.

This act has gained broad bipartisan support and approval from the Senate Homeland Security and Governmental Affairs Committee, marking a significant step forward in efforts to enhance transparency and accountability in government roles. The proposal responds to public demand for ethical reform, as many believe Congress members should not benefit from privileged information they access through their positions.

For more details, you can refer to the official sources on this legislation provided by the offices of Senators Ossoff and Merkley.

Check out the new bill that will hopefully be passed

Senator Jon Ossoff (D-GA) is leading a bipartisan effort to ban members of Congress from trading stocks through the Ending Trading and Holdings in Congressional Stocks (ETHICS) Act. This legislation, co-sponsored by Senators Jeff Merkley (D-OR), Josh Hawley (R-MO), and Gary Peters (D-MI), prohibits Congress members, along with the President, Vice President, and their families, from owning or trading individual stocks while in office. The bill requires divestment of all covered assets by 2027 and imposes penalties for violations. This effort addresses concerns over potential conflicts of interest and aims to restore public trust by ensuring that elected officials prioritize the public’s interests over personal financial gains.

This act has gained broad bipartisan support and approval from the Senate Homeland Security and Governmental Affairs Committee, marking a significant step forward in efforts to enhance transparency and accountability in government roles. The proposal responds to public demand for ethical reform, as many believe Congress members should not benefit from privileged information they access through their positions.

For more details, you can refer to the official sources on this legislation provided by the offices of Senators Ossoff and Merkley.

Consider adding a requirement for those under affected your policy to have to financially disclose and place in a trust for the period they are covered plus two years before the assets can be released back into their control. Any violation shall result in forfeiture of all such assets and their gains.