In a significant move towards transparency and accountability, a bipartisan group of Senators has reached a new agreement on legislation that would prohibit members of Congress from trading stocks while in office. The proposed ban would also extend to their spouses, dependent children, as well as the President and Vice President.

At a press conference on Capitol Hill, Senator Josh Hawley, a Republican from Missouri, emphasized the importance of Congress focusing on its duty to serve the public rather than personal financial gain. He stated, "Congress should not be here to make a buck. There is no reason why members of Congress ought to be profiting off of the information that only they get."

The proposal marks the latest chapter in an ongoing effort to limit lawmakers' ability to engage in stock market activities, with ethics experts highlighting the potential for an unfair advantage for legislators due to their access to privileged information.

This legislation has become the first to receive formal consideration by the Homeland Security & Governmental Affairs Committee, scheduled for July 24. Introduced by Senators Hawley, Jon Ossoff of Georgia, Jeff Merkley of Oregon, and Gary Peters of Michigan, the proposal aims to immediately prohibit members of Congress, the President, and the Vice President from buying and selling stocks and covered investments. Lawmakers would have a mandatory 90-day period to sell their existing stocks.

If passed, the bill would also extend the ban to include lawmakers' spouses and dependent children starting from March 2027. Additionally, the President, Vice President, and all members of Congress would be required to divest from any covered investments by that year.

The legislation proposes severe penalties for violations of the divestment mandate. Violators would face either the loss of their monthly salary or 10% of the value of each covered asset in violation.

Efforts to enact such a ban have faced significant challenges in the past. However, the disclosure of profitable trades made by several senators during the early days of the Covid-19 pandemic, based on classified briefings warning of the economic impact, propelled the movement forward. Although the FBI launched insider trading investigations into three senators, no charges were filed.

The momentum for the ban gained further traction as former Democratic House Speaker Nancy Pelosi dropped her opposition to the proposal. Pelosi's husband, millionaire investor Paul Pelosi, has been known for lucrative stock trades. Previously, Pelosi dismissed the ban as an unnecessary hindrance to lawmakers' participation in the "free market economy."

As the legislation moves forward, its supporters continue to advocate for ethics and integrity in Congress, aiming to create a level playing field for lawmakers and prevent conflicts of interest.