Trump Is Backing a Stock-Trading Ban That Doesn't Ban Trading Stocks
5 hours ago
- #insider-trading
- #ethics-reform
- #politics
- President Trump urged Congress to pass the Stop Insider Trading Act during the State of the Union, but the bill has significant loopholes.
- The bill allows lawmakers to keep existing stocks, reinvest dividends, and buy stocks for parents, avoiding a true ban on insider trading.
- Critics, including Rep. Joe Morelle and good-government groups, argue the bill is misleading and fails to address self-dealing in other branches of government.
- Alternative legislation, like the Restore Trust in Congress Act, proposes stricter bans on trading for lawmakers, the President, and Supreme Court justices.
- Despite bipartisan support for ethics reform, passing stricter measures faces challenges, including potential vetoes and procedural hurdles in Congress.
- Recent examples of lawmakers failing to disclose trades highlight ongoing transparency issues under current laws.