La Derecha Diario Republicans introduce PELOSI Act to prevent representatives from buying stocks
The law, which prevents members of Congress or their associates from trading stocks, was named by the infamous Democratic representative
Republican Senator Josh Hawley (Missouri) has reintroduced legislation aimed at prohibiting members of Congress and their spouses from trading or holding individual stocks while in office.
This proposal, known as the PELOSI Act (Preventing Elected Leaders from Owning Securities and Investments Act), was first introduced in 2023 but failed to advance during Joe Biden's administration. Now, with renewed bipartisan support and strong backing from current President Donald Trump, the initiative has gained momentum.
The law aims to address conflicts of interest among lawmakers who could benefit from insider information not available to the general public.
According to Hawley, "members of Congress should fight for the people they were elected to serve, not engage in stock trading at the expense of their constituents." The legislation seeks to restore public trust in Congress by limiting their access to financial benefits derived from legislative decisions.
The bill prohibits lawmakers and their spouses from owning, buying, or selling individual stocks during their tenure. However, they would be allowed to invest in diversified mutual funds, exchange-traded funds (ETFs), or U.S. Treasury bonds.
Current members of Congress would have 180 days to comply with the regulations after its approval, and newly elected members would have the same timeframe from their entry into office.
Those who do not comply with the legislation would have to return any profits made to the Treasury Department and could face a fine of 10% of the value of each improper transaction, imposed by the ethics committees of the House or Senate.
The law is named after the former Speaker of the House, Nancy Pelosi, whose family has been criticized for repeated stock trades based on internal legislative information.
Although both Pelosi and her husband Paul have denied any wrongdoing, several of their financial moves have caused public controversy and have reinforced calls for stricter regulation.
The bill also seeks to amend the Ethics in Government Act of 1978 and strengthen the prohibition on the use of non-public information for profit.
This proposal is one of the strictest presented to date, as it prevents both trading and holding individual stocks, unlike other proposals that allow maintaining investments under blind trusts.
Trump's support has been a significant development in this renewed attempt to pass the legislation. In a recent interview with Time Magazine, the president stated he would sign the bill if it reached his desk, claiming he had seen how Nancy Pelosi enriched herself through insider information.
Trump did not address this issue during his previous term, but now joins a growing coalition of politicians from both parties who see this reform as necessary.
Democratic leaders, such as the House Minority Leader, Hakeem Jeffries, have also expressed their support for a ban on stock trading by members of Congress.
Since 2020, multiple bipartisan proposals have been introduced to limit or prohibit these practices, but they have faced obstacles due to disagreements over the scope and enforcement of the rules.
Numerous polls indicate that the majority of Americans support these types of measures, suggesting there is broad public consensus on the need for greater financial ethics in Congress.
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