A bill to reform the STOCK Act that was released this week will likely not move forward in the coming days as lawmakers take time to review the legislation, according to Democratic Caucus Chairman Hakeem Jeffries (D-NY).
Jeffries defended the “legislative process” when questioned if the absence of a vote in the near future signaled a lack of urgency on the part of Democratic lawmakers. The Combating Financial Conflicts of Interest in Government Act would ban senior officials in all three branches of government, including lawmakers, their spouses, and dependent children, from trading stocks.
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“I would disagree with the premise that it’s taken too long,” Jeffries said at a press conference Thursday morning. “It’s a legislative process that follows regular order. You have a bill that has been released. Right now, it provides members an opportunity to evaluate it. Many members have been very vocal about their support for moving forward. It’s my expectation, and at some point, that will happen. But we also have a legislative process.”
The stock trading reforms have taken a back seat as Congress focuses on passing legislation to fund the government beyond Friday. Jeffries said the bill was not part of the discussion in Thursday morning’s Democratic caucus meeting but affirmed that he supports the bill and that lawmakers he’s spoken to have not “expressed strong opposition.”
“I strongly support the legislation, but from a timing standpoint, that’s a question that ultimately will be decided by our majority leader,” he said.
Majority Leader Steny Hoyer (D-MD), for his part, has said he will not support the bill in its current form. He also confirmed Thursday that there will probably not be a vote this week.
When the framework came out on Tuesday, his office said it did not go far enough.
“Leader Hoyer absolutely agrees insider trading must continue to be illegal and substantially penalized; he would like to see increased penalties for Members of Congress who violate these laws including an ethics citation and potential expulsion from Congress for such violations,” his office said in a statement. “He has also not seen final legislation, and will reserve his official decision until that time.”
The stock reform bill in its current form would require all federal government officials to divest from their stock investments, place them in a qualified blind trust, or donate the assets to charity. It includes exceptions for small-business equity, mutual funds, exchange-traded funds, treasury bills, government bonds, and thrift savings plans. Fines for violations would increase from $200 to $1,000 per infraction, and the identities of those who violated the law would be made public.
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Several lawmakers have faced scrutiny for allegations of insider trading. Speaker of the House Nancy Pelosi’s (D-CA) husband, Paul Pelosi, traded millions in stocks of large companies subject to her oversight, while Sen. Richard Burr (R-NC) stepped down from his position as top Republican on the Senate Intelligence Committee after the Department of Justice launched an investigation into his trades, an investigation the agency later closed without charges.
Pelosi has said she is supportive of tighter stock trading regulations.
