Biden Calls for Ban on Congressional Stock Trading

President Joe Biden has endorsed a ban on congressional stock trading, adding his voice to a growing chorus of lawmakers and advocates calling for an end to the practice. In an interview with A More Perfect Union, Biden stated, "Nobody in the Congress should be able to make money in the stock market while they’re in the Congress." This stance comes as a bipartisan group of senators has introduced legislation to prohibit lawmakers and their families from trading individual stocks.

The push for a ban on congressional stock trading has gained momentum in recent years, fueled by public outrage over lawmakers profiting from insider information and violating disclosure rules. A University of Maryland poll found that 85% of Americans support a ban on stock trading by members of Congress, indicating widespread concern about potential conflicts of interest.



The proposed legislation, known as the ETHICS Act, would direct lawmakers to stop buying new individual stocks immediately and require them to divest from any individual assets by the beginning of the next session of Congress in 2027. The bill specifies mutual funds as an alternative investment option, aiming to simplify the process and eliminate potential conflicts of interest.

Supporters of the ban argue that it would enhance public trust in government by preventing lawmakers from profiting from insider information. They contend that the current disclosure rules are insufficient and unevenly enforced, allowing lawmakers to exploit their positions for personal gain. Critics, however, worry that a ban could disproportionately affect incumbents who have built wealth through stock trading, potentially leading to a less diverse Congress.

The economic consequences of a ban on congressional stock trading for individual members and their families could be significant. A loss of potential income from stock market investments, a shift in asset allocation, and a change in the composition of Congress are all potential outcomes. However, the actual impact would depend on the specific details of the ban and the individual financial situations of the affected members.

In conclusion, President Biden's endorsement of a ban on congressional stock trading adds weight to the growing movement to address potential conflicts of interest in Washington. As public support for the ban continues to grow, lawmakers must consider the implications for transparency, accountability, and the composition of Congress. The ultimate goal should be to foster a more trustworthy and representative government, free from the appearance of corruption and favoritism.