U.S. Senaor Young supports bills to ban Stock Trading by members of Congress, help restore public trust

Today, U.S. Senator Todd Young (R-Ind.) announced he is supporting two bills that would place new restrictions on stock trading by members of Congress.

Young is cosponsoring the Restore Trust in Congress Act to stop insider trading by members of Congress, their spouses, and dependent children through banning the ownership and trading of individual stocks. The bill was introduced by Senator Ashley Moody (R-Fla.).

“I’ve heard from many Hoosiers who are rightly concerned about those serving in Congress unfairly profiting from their positions,” said Young. “I fully support a ban on stock trading by members of Congress, and I am supporting these bills to ensure such a ban becomes law. No one in Congress should benefit financially from public service and the trust placed in them by voters.”

The Restore Trust in Congress Act would include:

• Qualified Blind Trusts: These trusts shall be divested while a family trust could be granted an exception by a supervising ethics office under certain circumstances.
• Divestment Requirement: Existing covered investments must be divested within a specified compliance period (180 days for current covered individuals and 90 days for new covered individuals).
• Limited Exceptions: Diversified mutual funds and certain broad-based investment vehicles are permitted.
• Penalties: Pay a fee equal to 10 percent of the value of the covered investment; and disgorge the profits of any transaction that violates the provisions of the above provisions.
• Each Supervising ethics office shall publish a publicly available website showing each fine assessed in accordance with the bill, the reasoning for the fine’s assessment, and the result of the assessment.

The Stop Insider Trading Act would:

• Implement a Total Ban on Buying: Prohibit Members, spouses, and dependent children from purchasing any new stocks in publicly traded companies.
• Mandate Transparency in Selling: Require public notice at least seven days, but no more than 14 days, in advance of any intended sale.
• Enforce Real Consequences: Establish a penalty of $2,000 or 10% of the investment value (whichever is greater), plus the forfeiture of any net gain realized from the sale.
• Calibration: Stop insider trading without preventing successful people from the private sector from serving.
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