Democrats have introduced legislation that would ban senior government officials from owning and trading stocks.
The bill, called the Combating Financial Conflicts of Interest in Government Act, is an attempt to limit conflict of interest for public office holders and their families when it comes to their investments.
The proposed bill is wide reaching. If it’s passed, several people who hold senior public positions won’t be allowed to own or trade securities, commodities, futures, crypto currencies or other digital assets.
It’s no surprise that politicians and senior officials are well-connected people and have the inside track on new legislation that might affect a company or an industry. And while it doesn’t make them clairvoyant, it’s certainly an advantage when it comes to the market.
They would still be able to purchase diversified ETFs, diversified mutual funds, U.S. Treasury bills or bonds, state or municipal government bills or bonds and others.
The introduction of the bill comes just weeks after Nancy Pelosi, the speaker of the House, faced harsh criticism when her husband, Paul, a venture capitalist, exercised his call options and purchased shares in Nvidia, a manufacturer of graphics cards.
The timing of his move was widely criticized. It happened soon before the Senate was expected to vote on a bipartisan bill that would see domestic chipmakers get a $52 billion subsidy.
The bill was passed in July and, amid the scrutiny, Paul Pelosi sold his holdings in the semiconductor manufacturer at a six-figure loss.
But months before that summer scandal, as calls for legislation to combat the issue mounted, Nancy Pelosi directed the House Administration Committee to draft a bill back in February.
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