The ongoing controversy over legislators and their families engaging in insider trading has been brought to the forefront once again with the introduction of Rep. Abigail Spanberger’s TRUST in Congress Act. This legislation seeks to stop both public officials and their immediate family members from taking advantage of privileged information for financial gain, a problem that has caused many Americans to view these individuals as untrustworthy.
Former Speaker of the House Nancy Pelosi has come under scrutiny for her stock trades which have made her wealthy, leading some skeptics to question how an 82-year-old politician could outperform professional investors in the market. Seeking Alpha covered this issue, pointing out that it’s difficult to ignore when discussing Congressional insider trading. Adding fuel to the fire is Pelosi’s husband purchasing call options on Microsoft shortly before the announcement of a $21.9 billion deal with the U.S Army, resulting in a substantial spike in its stock prices afterwards.
In light of these events, there has been widespread condemnation from legislators calling for criminal prosecution should any member be found guilty of using inside information. Democratic Representative Adam Schiff expressed his agreement with Rep Spanberger’s proposal, saying he would happily cosponsor it if it reaches the floor. Thanks to 35 cosponsors ranging from Rep Matt Gaetz of Florida to Rep Adam Schiff of California, it appears that this bill may finally get sufficient support necessary for passage into law this time around.
If successful, this effort would offer much needed protection against any self-serving practices by lawmakers or their spouses through utilizing privileged knowledge and create increased transparency surrounding their investments while serving office by mandating qualified blind trusts as repositories for such assets. It would also be a welcome improvement from last year’s failed legislation which was unable to reach consensus despite being championed by House Speaker Nancy Pelosi who had originally argued against interference with legislators’ ability to buy and sell stocks without impediment or scrutiny.
The TRUST in Congress Act promises significant reform towards eliminating potential advantages within our government based on access to confidential data and restore public confidence through greater accountability when it comes to handling investments or trades impacting US citizens by our elected representatives, an important step towards ensuring fairness and justice within our democratic system.