Just imagine a world where politicians in Washington can’t dip their fingers in the stock market cookie jar while serving the nation. Well, Senators Kirsten Gillibrand [D-NY] and Josh Hawley [R-MO] have proposed the “Ban Stock Trading for Government Officials Act.” But, it’s not just their voices echoing in the political chambers. John Deaton, founder of CryptoLawUS, has jumped into this debate with a fresh, blistering perspective.
Deaton backs the Bill
For Deaton, it’s more than just trading stocks. He’s taken aim at the famed ‘revolving door’ culture—a phenomenon where regulators leave public service to warm the chairs in the same private companies they once oversaw. According to Deaton, this move would be a significant step in ‘draining the swamp.’
Deaton had this to say, “If you work for the @SECGov, you don’t get to resign and immediately get to go work at @jpmorgan or @GoldmanSachs. We need to stop the revolving 🚪 at these agencies and prosecute those who break financial conflict laws.”
What is the ‘Ban Stock Trading for Government Officials Act’?
The proposed bill endorsed by Senators Gillibrand and Hawley aims to prohibit stock trading by government officials, including members of Congress, the president, vice president, senior executive branch officials, and even their families.
But the bill’s reach isn’t confined to just trading prohibitions. It also introduces penalties for unregulated stock trading by executive branch officials and mandates them to report federal benefits they receive, barring salary compensations or tax refunds. This unprecedented transparency is aimed at increasing accountability and eliminating potential conflicts of interest.
Stricter Penalties: The Way Forward?
The proposed legislation plans to pack a punch by increasing penalties for failing to file transaction reports under the existing STOCK Act. Fines could jump from $200 to $500, with extra civil penalties for cases involving “substantial monetary value” or those considered “extraordinary in nature.”
While the future of this proposed legislation remains uncertain, a recent Morning Consult/Politico poll reveals a promising picture: At least 63% of Americans support the prohibition of stock trading for government officials and their families.
This call for stricter financial conflict laws, coupled with the proposed legislation, may just be the dawn of a new era in government ethics—an era where regulators and the regulated maintain an arm’s length distance, ensuring a more equitable and less conflicted marketplace for all.
