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Ending Trading and Holdings In Congressional Stocks (ETHICS) Act
1/14/2025, 7:03 PM
Summary of Bill S 1171
Under the ETHICS Act, members of Congress would be required to place their assets, including stocks, into a blind trust or divest them within 90 days of taking office. This would help to prevent lawmakers from using their positions to profit from non-public information or influence legislation that could impact their personal investments.
Additionally, the bill would require members of Congress to disclose any financial transactions within 45 days of making them, providing greater transparency and accountability to the public. Violations of the ETHICS Act could result in fines or other penalties for lawmakers found to be in violation of the new rules. Overall, the ETHICS Act aims to promote integrity and ethical behavior among members of Congress by eliminating the potential for conflicts of interest related to stock trading. The bill has garnered bipartisan support and is currently under consideration in the US Congress.
Congressional Summary of S 1171
Ending Trading and Holdings In Congressional Stocks (ETHICS) Act
This bill generally prohibits Members of Congress (and their spouses and dependents) from purchasing or selling certain investments, such as individual stocks and related financial instruments that are not diversified investment funds, Treasury securities, or other specified holdings. Violations of this prohibition are subject to specified civil penalties.
Members must certify their compliance with the provisions of the bill, and the applicable House or Senate ethics office must make the certifications and related information (e.g., trust agreements; descriptions of assets held in trusts; and federal loans, grants, or related benefits that the Member received) available online.
Additionally, the bill restricts certain communications between trustees and beneficiaries related to investments held in qualified blind trusts. Violations of the restriction are subject to specified civil penalties.
Further, the bill imposes penalties for failing to comply with existing financial disclosure requirements and requires electronic filing of those disclosures in a searchable format.
