Members of the United States House of Representatives, United States Senate, and Supreme Court Justices who currently trade cryptocurrencies may need to end HODLing in office if the bill receives enough votes.
According to the framework released Thursday, Zoe Lofgren, chair of the House Administration Committee responsible for day-to-day operations of the House of Representatives, said there is a “reasonable and effective plan to address financial conflicts of interest” in the US. Congress by restricting the financial activities of legislators and SCOTUS judges and their spouses and children. If passed in accordance with the framework, the bill would propose a policy change after passage of the Congressional Know-Hidden Trading Act of 2012, or the Stock Act, which allows members of Congress to buy, sell, and others stocks and to trade investments during the tenure . , but also obliges them to disclose such transactions.
“Congress can act to restore public confidence in its officials and ensure that those officials are acting in the public interest and not in their own private financial interests, by empowering senior government officials — including members of Congress and the Supreme Court — and their… Husbands. and dependent children from trading stocks or holding investments in securities, commodities, futures, cryptocurrencies and other similar investments and short selling stocks,” Lofgren said.
“I will shortly present the legal text for the bill based on this reform framework. Many MEPs have already concluded that reforms are needed.”
The framework suggested lawmakers and SCOTUS judges could continue to hold and disclose a portfolio of diversified mutual funds, exchange-traded funds, T-bills and other investments that “did not present the same potential for conflicts of interest.” The bill’s framework also proposed that disclosed amounts must be more accurate than the “extremely broad” range currently used — for example, $5 million to $25 million — and be available to the public.
Under the Stock Corporation Act, lawmakers are required to report the purchase, sale, or exchange of any investment over $1,000 within 30 to 45 days, but the law provides minimal financial and legal ramifications for failure to file on time — sometimes just a late fee from $200. The proposed framework would levy fines of $1,000 for every 30 days an individual violated disclosure rules, increase the late fee to $500, and authorize the Justice Department to file civil lawsuits if necessary. The House Press Gallery Twitter account reported on Thursday that the House could consider the proposed legislation as early as next week.
Senators Jon Ossoff and Mark Kelly proposed similar reforms to the Senate Stock Act in January, but there was no motion for more than eight months. According to Lofgren, House Speaker Nancy Pelosi has tasked the committee with investigating potential financial conflicts of interest in Congress. However, the spokesman has previously opposed efforts to ban lawmakers from owning or trading stocks, saying “they should be able to participate”.
Related: Powers On… Why are US officials ignoring ethics and the STOCK Act in stock trading?
Several members of the House of Representatives and Senators have publicized their commitment to crypto investing, including Marie Newman, Representative from Illinois, Michael Waltz, Representative from Florida, Cynthia Lummis, Senator from Wyoming, Michael McCaul, Representative from Texas, Pat Toomey, Representative from Pennsylvania, Barry Moore, Representative from Alabama and Representative from New Jersey. Jefferson van Drew. In December 2021, New York Representative Alexandria Ocasio-Cortez said it was inappropriate for her to hold Bitcoin (BTC) or any other digital asset because US lawmakers have access to “sensitive information and policies in the making.”