Home CryptocurrencyAltcoin The framework for banning members of Congress and SCOTUS from stock trading includes the provision of cryptocurrencies

The framework for banning members of Congress and SCOTUS from stock trading includes the provision of cryptocurrencies

by SuperiorInvest

Members of the United States House of Representatives and Senate, as well as Supreme Court Justices who currently trade in cryptocurrency, may have to stop HODLing while in office if the bill receives enough votes.

According to the framework released Thursday, House Administration Committee Chairwoman Zoe Lofgren – responsible for the House’s day-to-day operations – said it has a “meaningful and effective plan to combat financial conflicts of interest” in the US. Congress by restricting the financial activities of legislators and SCOTUS judges, as well as their spouses and children. If passed under this framework, the bill would propose a policy change following the passage of the Congressional Knowledge Act of 2012, or the Stocks Act, that would allow members of Congress to buy, sell and trade stocks and other investments while in office. , but also require them to disclose such transactions.

“Congress can act to restore public confidence in its public officials and ensure that those officials act in the public interest, not their private financial interest, by limiting senior government officials—including members of Congress and the Supreme Court—and their wives. and dependent children from trading stocks or holding investments in securities, commodities, futures, cryptocurrencies and other similar investments and from shorting stocks,” Lofgren said.

She added:

“I will soon present the legislative text for a bill built on this reform framework. Many MPs have already concluded that reforms are necessary.”

The framework proposed that lawmakers and SCOTUS judges could still hold and disclose a portfolio of diversified mutual funds, exchange-traded funds, Treasury bills and other investments that “did not present the same potential for conflicts of interest.” The framework also proposed the amounts disclosed should be more precise than the “extremely broad” range currently used—for example, from $5 million to $25 million—and be available to the public.

Under the Stocks Act, lawmakers are required to report the purchase, sale or exchange of any investment above $1,000 within 30 to 45 days, but the law provides minimal financial and legal consequences for not filing on time — sometimes as little as a $200 late fee. The proposed framework proposed levying fines of $1,000 for every 30 days an individual violated the disclosure rules, raising the late fee to $500 and allowing the Justice Department to initiate civil actions 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 designed similar reforms for the stock bill in the Senate in January, but there has been no movement on the bill in over 8 months. House Speaker Nancy Pelosi, according to Lofgren, has tasked the committee to review potential financial conflicts of interest in Congress. However, the speaker earlier pushed against the effort prohibit lawmakers from owning or trading stocks, saying “they should be able to participate.”

Related: Powers On… Why do US officials ignore ethics and the STOCK Act when trading stocks?

A number of House members and senators do disclosed their cryptocurrency exposure investments, including Illinois Representative Marie Newman, Florida Representative Michael Waltz, Wyoming Senator Cynthia Lummis, Texas Representative Michael McCaul, Pennsylvania Representative Pat Toomey, Alabama Representative Barry Moore and New Jersey Representative Jefferson Van Drew. In December 2021, New York Representative Alexandria Ocasio-Cortez he said it was inappropriate for her hold bitcoins (BTC) or other digital assets because US lawmakers have access to “sensitive information and pending policies.”

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