President Joe Biden supports a prohibition on members of Congress trading equities while in office. Later this week, Biden reiterated in an interview that no member of Congress should profit from the stock market while serving the country. This is his most firm view on the topic, having previously remained silent on proposed legislation to limit congressional stock trading.
The drive for reform has gained pace in recent years, with bipartisan backing for legislation prohibiting lawmakers from trading stocks. Congress introduced the Bipartisan Restoring Faith in Government Act, but it failed to gain traction. If passed, this bill would require members of Congress to sell their equities within 90 days of the law’s passage or place them in a blind trust.
Biden’s remarks reflect growing concerns about potential conflicts of interest in Congress. The criticism derives from the possibility that lawmakers, who frequently have access to secret information, could exploit that knowledge to make profitable stock trades. Despite the examination of several members of Congress, such as former Senators Richard Burr and Kelly Loeffler, for stock trades based on insider information, current regulations have not resulted in any charges.
The STOCK Act currently authorizes Members of Congress to trade stocks, requiring them to declare any trades worth more than $1,000 within 45 days. Despite limited enforcement, the law also prohibits trading based on insider information.
Biden’s support for a ban reflects a larger discourse about government accountability and openness. While some lawmakers have defended the practice, claiming that it is a component of a free-market economy, others, such as Senator Mitt Romney, have advocated for tougher rules.
The discussion continues as Congress members contemplate how to strike a balance between their financial interests and their civic duties. With Biden’s strong support for the ban, it appears that the issue will continue to gather traction in the coming months.
