Public service stock trading ban act!

Prohibit members of Congress, their staff, and certain executive branch officials from buying or selling individual stocks while in office.
• Scope: Extend the ban to immediate family members (spouses, children) to close loopholes.
• Blind Trusts: Mandate that officials’ investments be placed in blind trusts or diversified mutual funds/ETFs, managed by an independent third party, during their term.
• Cooling-Off Period: Add a 1-2 year post-office ban on trading individual stocks to prevent delayed profiteering from their influence.
• Enforcement:
• Require real-time disclosure of all financial holdings and transactions, monitored by an independent ethics body (e.g., an expanded Office of Government Ethics).
• Penalties: Heavy fines (e.g., 10x the profit made), jail time (5-10 years for willful violations), and forfeiture of office.

•	Critics might argue this restricts “private property rights” under the Fifth Amendment. Counter this by emphasizing it’s a condition of public service, not a blanket ban—similar to existing ethics rules (e.g., conflict-of-interest laws).


•	Public Support: Highlight cases like lawmakers profiting from COVID-19 briefings in 2020 (e.g., Sen. Richard Burr’s stock sales). Polls show 70-80% of Americans support banning congressional stock trading (e.g., 2022 YouGov data).
•	Precedent: Point to the STOCK Act (2012), which already bans insider trading based on nonpublic info but lacks teeth. Your proposal strengthens it.
4 Likes

You would need to go further. As i currently invest in stocks, its very easy to provide money to another and tell them what to buy. So something would have to be done in order to ensure their family doesn’t get rich as well. For instance i can usually call my parents, wife, or sister and easily have hem buy stock for me if i needed. Truly i have no reason to do so. However if i was in a situation such as congress i could see them doing this many times over. So some sort of oversight on their finances in general would also need placed. Money tagged and checked out. Trust me our government does this currently for those with Top secret clearances and could easily do so for congress and senate. Though clearly it needs improved on the oversight to begin with. Since we also have many who have that clearance who take advantage of it as well.