Avoid Insider Trading and Corruption! 27 U.S. Congress Members Jointly Urge Ban on Stock Trading by Congress Members, Will Cryptocurrency Be Next?

27 members of the U.S. House of Representatives are urging action by jointly sending a letter proposing a "ban on members of Congress owning or trading stocks" in order to prevent potential corruption from pursuing personal interests.

According to a report by Cointelegraph, the letter has been delivered to House Speaker Nancy Pelosi and Republican leader Kevin McCarthy on Monday. The letter, signed by 27 members of the House of Representatives, calls for a ban on members of Congress holding or trading stocks, and has garnered support from various political figures.

Among those who signed the letter is Illinois Congressman Bill Foster, who is also a member of the Congressional Blockchain Caucus.

Currently, members of Congress are allowed to buy and sell stocks and other investments while in office, but are required to disclose their investments under the Stop Trading on Congressional Knowledge (STOCK) Act passed in 2012 to prevent insider trading. The Act requires legislators to report any trades over $1,000 within 30 to 45 days.

The STOCK Act has been in operation for almost 10 years, and legislators who have not timely reported as required have not faced significant financial or legal penalties. Therefore, the joint letter mentions: "Since 2020, the STOCK Act has been violated hundreds of times."

"It is clear that the current rules are not effective. Congress should pass simple regulations to close the loophole by prohibiting members from holding or trading stocks while in office. As sought by the STOCK Act, ensuring that legislators do not have access to more favorable information than the general public can prevent potential corruption in pursuit of favorable investment portfolios," the joint letter to the Speaker states.

The signatories of the joint letter stated, "We should focus on working and serving our constituents, and there is no reason to allow members of Congress to trade stocks. Perhaps this means some of our colleagues will miss out on lucrative investment opportunities, but we don't care. We come to Congress to serve our country, not to make a quick buck."

As of the time of writing, Speaker Pelosi has not responded. However, when asked about members' involvement in trading stocks last December, Pelosi stated that the United States is a free-market economy, and members of Congress should be able to participate.

Last December, the youngest Democratic member, Alexandria Ocasio-Cortez, expressed her belief that members of Congress should not hold or trade individual stocks, including cryptocurrencies, and she is preparing a bipartisan proposal to ban members and their staff from holding stocks. However, she did not participate in the joint letter to the House Speaker and Republican whip.

This article is authorized for reprint from Horizon Next Sumari News