Congressman Krishnamoorthi Calls For Congress To Ban Its Members From Trading Individual Stocks In Response To Insider Trading Allegations Against Senators
WASHINGTON, DC – Today, Congressman Raja Krishnamoorthi responded to the insider trading investigations into multiple senators, including outgoing Senate Intelligence Chairman Burr, by calling for Congress to pass the Ban Conflicted Trading Act, his legislation which would bar members of Congress from buying and selling individual stocks.
“While it’s fitting that Senator Burr has yielded his gavel as a result of the investigation into his alleged insider trading, we still must address the inherently conflicted position of any member of Congress in trading individual stocks,” said Congressman Raja Krishnamoorthi. “The only way to end the risk of insider trading by members of Congress is to end all stock trading by members of Congress and that is precisely what the Ban Conflicted Trading Act would do.”
In March, Congressman Krishnamoorthi (IL-08), Congresswoman Alexandria Ocasio-Cortez (NY-14), and Congressman Joe Neguse (CO-02), introduced the House version of Senator Jeff Merkley’s Ban Conflicted Trading Act. Under The Ban Conflicted Trading Act, Members of Congress and senior congressional staff would be barred from buying or selling individual stocks or other investments while in office. Upon joining Congress, new members would be allowed to sell individual holdings within their first six months in office while sitting members would be allowed to sell their individual holdings within six months of the bill’s enactment. Members would also have the option of retaining their existing investments while in office, so long as they do not trade them while in office, or transferring their holdings into a blind trust. Additionally, members would still be permitted to hold widely-held, broad-based investments, such as diversified mutual funds and exchange-traded funds. The legislation also prohibits members of Congress from serving on corporate boards while in office, which the Senate has already barred but the House currently permits.