Ban on Stock Trading for Congress Members and Families: Mandatory Blind Trusts
This Act aims to boost public trust by prohibiting Members of Congress, their spouses, and dependent children from holding, purchasing, or selling specific financial instruments like stocks, commodities, and security futures while in office. Citizens benefit from increased assurance that legislative decisions are not driven by politicians' personal financial gains. All existing covered assets must be divested or placed into 'qualified blind trusts' within 120 days of the Act's enactment or the start of service.
Key points
Prohibition on Holdings and Trading: Members of Congress and their immediate families (spouses, dependent children) are prohibited from holding, purchasing, or selling covered financial instruments, including stocks, commodities, and security futures.
Mandatory Blind Trusts: Existing covered assets must be divested or placed into 'qualified blind trusts' within 120 days. A blind trust is managed independently, and the politician has no knowledge of its specific holdings.
Exclusions: The prohibition does not apply to diversified mutual funds, diversified exchange-traded funds (ETFs), U.S. Treasury bills/notes/bonds, or compensation from a spouse's/dependent child's primary occupation.
Enforcement and Penalties: Violations result in civil penalties equal to the Member's monthly salary, imposed every 30 days, and the requirement to disgorge (return) any profits made from illegal transactions.
Introduced
Citizen Poll