Newly elected California representatives Eric Jones and Scott Wiener back proposal prohibiting lawmakers and their spouses from owning or trading individual stocks
WASHINGTON — Just hours after the Associated Press called California’s 4th Congressional District race in his favor, Congressman-elect Eric Jones joined a group of more than 50 incoming House Democrats calling for a ban on stock ownership and trading by members of Congress and their spouses.
Jones signed the letter Saturday morning, Nov. 14, following Friday night’s election call that confirmed his victory over longtime incumbent Mike Thompson. The move was among his first actions as congressman-elect.
“I’ve been clear since day one of this campaign: members of Congress and their spouses should never be owning or trading stocks while they’re writing the laws that move the market,” Jones said in a statement.
“This race was called last night, and signing this letter was one of the first things I did this morning as Congressman-elect. I’m excited and ready to be working with my fellow freshmen on it. A full ban is long overdue, and I’ll keep pushing until it’s law.”
The letter, dated Nov. 12, was addressed to House Democratic Leader Hakeem Jeffries, Democratic Whip Katherine Clark and other members of the party’s leadership. It calls for the House to adopt a rule when the new Congress convenes in January prohibiting lawmakers and their spouses from owning or trading individual stocks, commodities, futures, derivatives and related securities.
The proposed restrictions would include limited exceptions for diversified mutual funds and investments held in qualified blind trusts.
The letter argues that existing insider trading laws do not adequately address conflicts of interest involving elected officials who regulate industries in which they may have personal financial investments.
“Members of Congress are getting rich trading stock in the industries they regulate while the people they represent fall behind on rent and groceries,” the incoming lawmakers wrote.
The signatories framed the proposed ban as an early opportunity for the incoming Democratic majority to address public distrust of Congress.
“Democrats may have won the election, but we have a long way to go to earn back the trust of voters across the country,” the letter states. “The existing laws around insider trading are insufficient. We should hold ourselves to the highest standard and work to restore faith in government.”
The letter also declares, “Nobody should leave Congress with millions more in their bank accounts.”
Jones, who defeated Thompson after the incumbent served 14 terms in Congress, campaigned on concerns about affordability, government accountability and the influence of money in politics.
His decision to join the letter came after the initial effort was already underway. Although the document is dated Nov. 12 and had been circulated among newly elected Democrats before the election was called in his district, Jones did not sign until Saturday morning.
Another newly elected California congressman, Scott Wiener, who will represent the 11th Congressional District, also signed the letter.
“Proud to sign this letter by 50 freshmen pushing for a House rule to ban stock trading by members of Congress and their spouses,” Wiener said.
“For our democracy to succeed, we must restore people’s faith that government is working for their benefit and not for the personal benefit of members of Congress.”
Other California signatories include Jacqui Irwin of the 26th District, Richard Pan of the 6th District, Randy Villegas of the 22nd District and Marni von Wilpert of the 48th District.
The proposal comes amid a broader congressional debate over stock trading restrictions that has attracted bipartisan support but has not resulted in a comprehensive prohibition.
In July, House Republicans and 13 Democrats approved a stock trading measure, although Democrats criticized the legislation for not going far enough and for its connection to a voter identification proposal. Senate Democrats subsequently blocked the measure in September.
The existing STOCK Act of 2012 prohibits members of Congress from using material nonpublic information for personal financial benefit and requires disclosure of certain financial transactions. It does not categorically prohibit lawmakers or their spouses from owning or trading individual stocks.
The incoming Democratic lawmakers are seeking a broader prohibition through the House rules package, which would allow the chamber to establish restrictions on its own members without waiting for a separate law covering the entire federal government.
The letter describes the proposed House rule as an initial step toward broader restrictions on elected and appointed federal officials and their spouses.
“A stock trading ban alone will not fix Washington, but it is the fastest way to show voters we heard them,” the lawmakers wrote.
“This rule would be a down payment on much-needed reform to prevent elected and appointed government officials and their spouses from trading stocks. We promised our communities we would clean up this place. In January, we should do just that.”
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