U.S. Senator Kirsten Gillibrand (D-NY)
U.S. Senator Kirsten Gillibrand and Democratic Representative Katie Porter of California announced the reintroduction of the bicameral STOCK Act 2.0
Gillibrand, who was the lead sponsor and author of the original STOCK Act, said the STOCK Act 2.0 would build on the STOCK Act to strengthen disclosure rules and prevent individuals in trusted positions of public service – including members of Congress, their families, and their staff – from using their access for self-enrichment.
The original STOCK Act barred members of Congress, the president, the vice president, and high-level staff from engaging in insider trading or otherwise using nonpublic information for their own benefit. It also included important updates to financial transparency by requiring these high ranking government officials to expeditiously disclose financial transactions to the public.
Tom Reed
Congressman Tom Reed says he supports reforms to the STOCK act, “I think as a member of Congress, we should be held to a standard that’s higher than the typical situation, but at a minimum, those standards that are existing now throughout the private sector.”
Reed said, however, the matter can get complicated, “That this can get some members unintentionally because of their holdings, because the nature of their holdings with their family members. It can be complicated, so it’s not a quick 30-second soundbite solution that will solve this problem.”
Reed said the other issue is that stocks are often part of assets belonging to legislators before they’re elected to Congress and are part of developing retirement plans, “It’s more complicated than what they’re saying is ‘let’s ban the ownership of stocks outright.’ So I recognize that, but I think moving more toward a… if you’re going to own stocks, especially individual stock, that there needs to be more transparency on that ownership when acquired and how disposed of in regards to allowing the public if there’s any nefarious actors going on here.”
The new legislation proposed by Gillibrand and Porter would impose additional disclosure requirements and restrictions for high level officials including members of Congress, Senior congressional staff, the president, and vice president.
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