Biden Backs Ban on Congressional Stock Trading
During his 36 years in the Senate, the president did not engage in any stock trading, as noted by then-White House Press Secretary Jen Psaki in 2022.
After initially refraining from taking a stance on the matter, President Joe Biden voiced his support for a ban on Congressional stock trading on December 17.
“We should change the law … so that no one in Congress makes money in the stock market while serving,” Biden remarked.
As stated by then-White House Press Secretary Jen Psaki in 2022, Biden did not trade stocks throughout his lengthy Senate career.
Initially, the president was hesitant to express his view on a potential ban on Congressional stock trading.
According to Psaki in 2022, Biden “believes that everyone should be held to the highest standard, but he will allow Congressional leaders and members to decide what the role should be.”
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A variety of proposals have been made in Congress aimed at banning stock trading among its members.
A bipartisan initiative was proposed in March 2023 to prevent members of Congress and their spouses from engaging in stock trading. This measure would require members to divest certain assets within 180 days following its enactment and demand that they and their spouses divest other specified assets within five years of the law’s passage.
This proposal has yet to be presented for a vote in the House.
Another stock trading ban bill made progress in the Senate earlier this year.
In July, a bipartisan coalition of 20 House members urged House Speaker Mike Johnson (R-La.) and House Minority Leader Hakeem Jeffries (D-N.Y.) to consider legislation that would prohibit lawmakers from trading stocks.
“Members of Congress should be serving their constituents, not exploiting their positions for financial gain. Personal stock holdings do little for our districts, and any hint of insider trading erodes trust in elected officials’ commitments,” stated Rep. Jared Golden (D-Maine).
“The public has a right to expect that Members of Congress will tirelessly represent their interests in addressing the challenges our communities face, instead of taking advantage of their public roles for personal benefit,” Rep. Brian Fitzpatrick (R-Pa.) remarked.
Although there is no current prohibition on stock trading by members of Congress, the Stock Act of 2012 does limit them from utilizing information gleaned from their official duties for personal profit.
