The House of Representatives narrowly approved on Wednesday a bill presented by the Republican Party and supported by the Trump administration that prohibits national legislators from buying stocks on the stock market. The vote faced opposition from the Democratic Party, with only 13 of its legislators voting in favor of the bill.
This is the first time a significant bill to restrict stock purchases in Congress has been voted on in the House of Representatives since the approval of the STOCK Act in 2012. The one who has generated a fortune with this type of stock trading —and the use of privileged information— throughout her parliamentary career is Congresswoman and former Democratic leader in the House, Nancy Pelosi.
If ratified by the Senate, the bill would prohibit congress members, their spouses, and dependent children from buying certain assets —such as shares issued by publicly traded companies or equivalent financial instruments— although it would maintain some exceptions for certain types of investments and transactions.
Nancy Pelosi and her husband Paul are the kings of insider trading
With this law, if a legislator, their partner, or their children want to sell stocks, they must publicly notify Congress one week in advance to prevent them from selling secretly using confidential government information. Those who violate the rule face a fine of $2,000 or 10% of the value of the investment (whichever is greater), plus the return of any net gains obtained from the transaction.
The Democratic caucus harshly criticized this bill and the ruling party's maneuver, which linked this stock purchase restriction bill with one of Trump's legislative priorities, which is the requirement to present a photo of a valid identification document when voting.
The opposition claims that their alternative proposal is superior and that the prohibition on trading stocks should also extend to the White House to, according to them, stop Trump and a "level of corruption never seen in the presidency." Nevertheless, 198 of their legislators voted against this bill, while 232 Republicans voted in favor.
