President Biden Proposes Ban on Congressional Stock Trading

In a move that could reshape financial practices within the U.S. government, President Joe Biden has reportedly endorsed a ban on members of Congress trading stocks while in office. The proposal, which aims to address potential conflicts of interest and increase public trust in elected officials, was discussed in a recent interview that is set to be released in the coming days by the labor advocacy group More Perfect Union.

According to a December 17 report by the Associated Press, President Biden expressed strong support for the measure, saying, “nobody in Congress should be able to make money in the stock market while they’re in Congress.” This marks one of Biden’s most significant comments on the issue, as he has largely refrained from publicly commenting on legislative efforts aimed at curbing stock trading among lawmakers.

Bipartisan Support for Legislation

Efforts to curb stock trading by members of Congress have gained bipartisan momentum in recent years. In July, both the House of Representatives and the Senate came together in support of an agreement to prevent the President, Vice President, and members of Congress from trading or selling various financial assets, including securities, commodities, futures, options, and trusts.

The proposed ban could also extend to cryptocurrencies, which some members of Congress have reported holding in accordance with the Stop Trading on Congressional Knowledge (STOCK) Act, passed in 2012. Lawmakers have faced growing scrutiny over their investments in digital assets, and several members, including Senator Ted Cruz of Texas and Representative Mike Collins of Georgia, have publicly disclosed holdings in Bitcoin and Ether.

Biden’s Personal Stance

In the interview, President Biden reflected on his own experience as a member of Congress. He stated that he lived on his Senate salary during his tenure representing Delaware from 1973 to 2009, choosing not to trade stocks while in office. This position contrasts with the growing trend among lawmakers of buying and selling stocks, raising concerns about potential conflicts of interest.

While President Biden has not extensively discussed cryptocurrency during his presidency, he did introduce an executive order in 2022 aimed at establishing a regulatory framework for digital assets. The issue of crypto trading among lawmakers may also be addressed as part of broader legislative reform.

Potential Conflicts of Interest in the Crypto Space

The proposed trading ban comes amid increasing concerns about conflicts of interest among lawmakers and public officials, particularly in the context of the 2024 election. President-elect Donald Trump, for instance, has significant holdings in cryptocurrency and is expected to have access to additional digital assets through his decentralized finance initiative, World Liberty Financial. This has raised questions about whether elected officials’ financial interests in the crypto space could influence policy decisions.

Senator Cynthia Lummis of Wyoming, who has publicly disclosed her Bitcoin holdings, has been a vocal advocate for cryptocurrency, even proposing legislation for the U.S. to establish a strategic Bitcoin reserve. Such initiatives have the potential to impact the price of Bitcoin, leading some experts to question whether lawmakers’ personal financial stakes could influence their legislative actions.

Broader Implications

While the proposal to ban stock trading within Congress is garnering attention, it remains unclear whether President Biden would extend this ban to the U.S. Supreme Court, where justices are permitted to trade stocks. The justices have faced criticism over potential conflicts of interest, particularly when they do not recuse themselves from cases that could benefit their financial holdings.

As the 2024 election approaches, the debate over stock and crypto trading by elected officials continues to gain traction. With President-elect Trump set to take office in January, and Senator Lummis pushing for a more crypto-friendly approach, it remains to be seen how these issues will evolve under the next administration.

Biden’s proposed ban, however, signals a clear desire for reform and transparency in Congress, as lawmakers face increasing scrutiny over their financial activities and their potential to influence national policy for personal gain.