Members of the United States House of Representatives and Senate, as well as Supreme Court justices who currently trade cryptocurrencies, may have to stop investing while in office if a bill gets enough votes.
In a framework released Thursday, House Administration Committee Chairwoman Zoe Lofgren, who is responsible for the day-to-day operations of the House, said she had a “meaningful and effective plan to combat financial conflicts of interest.” in the United States Congress, restricting the financial activities of legislators and Supreme Court justices, as well as those of their spouses and children. The bill, if passed according to the framework, would suggest a policy change following the 2012 passage of the Stop Trading With the Knowledge of Congress, or STOCK Act, which allows members of Congress to buy, sell and trade in stocks and other investments while in office, but also requires them to disclose such transactions.
“Congress can act to restore the public’s faith and confidence in its public officials and ensure that these officials act in the public interest, not in their personal financial interest, by restraining senior government officials – including members of Congress and the Supreme Court – and their spouses and dependent children from trading in shares or holding investments in securities, commodities, futures, cryptocurrencies and other similar investments, as well as short selling shares,” Lofgren said.
He further added:
“I will soon present the legislative text of a bill based on this reform framework. Many deputies have already concluded that the reforms are necessary.”
The framework suggested that lawmakers and Supreme Court justices could continue to hold and disclose a portfolio of diversified mutual funds, exchange-traded funds, Treasury bills and other investments that “do not present the same potential for conflicts of interest.” The bill’s framework also proposed making the disclosure amounts more precise rather than the “extremely wide” range currently used – say, $5 million to $25 million. and made available to the public.
Under the STOCK Act, legislators are required to declare the purchase, sale, or exchange of any investment over $1,000 within 30 to 45 days, but the law provides minimal financial and legal consequences for failing to file. timely information, sometimes as little as a $200 late fee. The proposed framework suggested imposing fines of $1,000 for each 30-day period that a person failed to comply with the reporting rules, increasing the late fee to $500, and authorizing the Department of Justice to take civil action if necessary. The Twitter account of the House Press Gallery reported Thursday that the House could consider the proposed legislation as soon as next week.
Senators Jon Ossoff and Mark Kelly proposed similar reforms to the STOCK Act in the Senate in January, but there has been no movement on the bill in more than 8 months. According to Lofgren, House Speaker Nancy Pelosi tasked the committee with reviewing potential financial conflicts of interest in Congress. However, the president has previously opposed efforts to ban lawmakers from owning or trading shares, saying “they should be able to participate in it.”
Several members of the House of Representatives and senators have disclosed their exposure to cryptocurrency investments, including Illinois Rep. Marie Newman, Florida Rep. Michael Waltz, Wyoming Sen. Cynthia Lummis, Texas Rep. Michael McCaul, the Pennsylvania Representative Pat Toomey, Alabama Representative Barry Moore and New Jersey Representative Jefferson Van Drew. In December 2021, New York Rep. Alexandria Ocasio-Cortez said that it was inappropriate for her to hold Bitcoin (BTC) or other digital assets because US lawmakers have access to “sensitive information and future policy.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.