House Majority Leader Steny Hoyer (D-MD) said in leadership meetings he does not plan on backing the STOCK Act.
The Maryland Democrat’s comments come as some members of the Democratic caucus ramp up calls to pass legislation curbing lawmakers’ ability to trade on information they receive as part of their positions.
In a statement, Hoyer’s office argued the stock trading bill does not go far enough.
“Leader Hoyer absolutely agrees insider trading must continue to be illegal and substantially penalized; he would like to see increased penalties for Members of Congress who violate these laws including an ethics citation and potential expulsion from Congress for such violations,” it said. “He has also not seen final legislation, and will reserve his official decision until that time.”
HOUSE MAY CONSIDER LEGISLATION NEXT WEEK THAT WOULD BAN MEMBERS FROM STOCK TRADING
A blueprint of the legislation was unveiled by House Administration Chairwoman Zoe Lofgren (D-CA) in a “Dear Colleague” letter. The measure would bar lawmakers, their spouses, and dependent children in addition to Supreme Court justices from trading stocks and cryptocurrencies as well as mandate the electronic filing of financial disclosures, Business Insider reported. The framework also includes language to increase the penalties for violations from $200 to $1,000 for every 30 days they do not comply with the rules.
Multiple lawmakers have come under fire over controversial stock trades, including Sen. Richard Burr (R-NC), who stepped down from his role as chairman of the Senate Intelligence Committee after the Department of Justice launched an investigation into potential insider trading at the outset of the COVID-19 pandemic. The DOJ ultimately opted not to pursue charges.
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Speaker Nancy Pelosi (D-CA), who has voiced support for bringing a bill to address the problem to the floor, has also taken heat over her husband’s purchase of stocks in semiconductor companies just ahead of the House taking up a bill to provide subsidies to the industry.
Critics of the legislation have argued there are already safeguards aimed at providing transparency and preventing insider trading from taking place. Congress passed legislation in 2012, also titled the STOCK Act, which bars members and staff from using nonpublic information for financial gain and requires them to disclose stock and bond transactions publicly within 45 days.
