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Bipartisan Ban on Congressional Stock Ownership Act of 2022
12/30/2022, 4:18 AM
Summary of Bill HR 6678
The bill was introduced by a bipartisan group of lawmakers who believe that owning individual stocks can create conflicts of interest for members of Congress. By banning stock ownership, the bill aims to ensure that lawmakers are making decisions in the best interest of the American people, rather than their own financial gain.
If passed, the Bipartisan Ban on Congressional Stock Ownership Act of 2022 would require members of Congress to divest any individual stocks they currently own within 90 days of the bill becoming law. Lawmakers would still be allowed to invest in mutual funds and other diversified investment vehicles, but would be prohibited from owning individual stocks. Supporters of the bill argue that it is necessary to restore public trust in Congress and prevent lawmakers from using their positions for personal financial gain. Critics, however, have raised concerns about the potential impact on lawmakers' ability to manage their own finances and make informed investment decisions. Overall, the Bipartisan Ban on Congressional Stock Ownership Act of 2022 is a significant piece of legislation that aims to address ethical concerns within Congress and promote transparency and accountability among lawmakers.
Congressional Summary of HR 6678
Bipartisan Ban on Congressional Stock Ownership Act of 2022
This bill prohibits Members of Congress and their spouses from owning or trading stocks, bonds, commodities, futures, or any other form of security. Each current Member must divest within 180 days after the bill is enacted and each new Member must divest within 180 days after becoming a Member. However, Members and their spouses have 5 years to divest from specified complex investment vehicles. The bill does not apply to certain investments, such as investments in widely held investment funds that are diversified and do not present a conflict of interest and investments held in government employee retirement plans.
A Member or spouse who violates the bill may be subject to a fine of up to $50,000 for each violation. The bill permits a Member or spouse who is required to divest property under the bill to avoid recognizing gain for income tax purposes from the sale of that property to the extent that the Member or spouse purchases permitted bonds or diversified investment funds within 60 days of the divestiture.
