Hawley Introduces the PELOSI Act: Bill to Ban Stock Trading by Legislators and Spouses

Missouri Sen. Josh Hawley has re-introduced a bill to ban members of Congress and their spouses from owning and trading stocks, using the name of his legislation to mock former President Nancy Pelosi.

The Act to Prevent Elected Leaders from Owning Securities and Investments (PELOSI) would give members and their spouses six months after first taking office to dispose of any holdings or place them in a blind trust: mutual funds, exchange-traded funds and Treasuries would continue to be allowed.

Any member who violates the bill would have to “return their profits to the American taxpayers.”

Two years after the bill was signed, the Government Accountability Office (GAO) would conduct an audit of member compliance.

“Members of Congress and their spouses should not use their position to get rich in the stock market,” Hawley tweeted when announcing the bill.

Also on Tuesday, Hawley announced that he would introduce legislation that is likely to be less popular with the American public: a bill that would ban TikTok across the country.

The Republican senator previously introduced a differently named stock ban legislation in the last Congress.

Pelosi was criticized for her husband Paul’s prolific stock trading during his time leading Democrats in the House. In July, Paul unscrupulously bought $5 million worth of semiconductor chip stock days before a House vote that awarded $52 billion to semiconductor makers. She sold the shares at a loss to avoid “misinformation” or the appearance of a conflict of interest.

The Pelosis have a combined net worth of around $46 million.

The former speaker has long maintained that she does not discuss stocks with her husband. But video footage from Pelosi’s daughter’s documentary on the former speaker highlighted how often Paul is in the room while Pelosi conducts business on the phone.

Former Speaker Nancy Pelosi has long maintained that she does not discuss actions with her husband.

Banning stock trading in Congress has bipartisan support on Capitol Hill: a series of bills were introduced in both the House and Senate in the last Congress.

Many Americans expected to see stock ban legislation in the last Congress after reports revealed that hundreds of lawmakers regularly trade stocks directly related to their work in Congress.

In September, Pelosi backed a bill to ban stock trading in Congress that some proponents of government reform say didn’t go far enough. The legislation never went anywhere for the rest of his presidency.

Nearly 100 House members bought or sold financial assets related to the work of the committees they sit on, according to a September New York Times report.

Of the 435 House members, 183 traded stocks through themselves or their immediate family members between 2019 and 2021. At least 97 bought or sold stocks, bonds, or other financial assets through themselves or their spouses who were directly related to his work in Congress.

The trades that intersect with the committee’s work are split evenly along party lines: 49 Republicans and 48 Democrats.

Since 2012, members of Congress have been bound by the SECURITIES Act, which requires them to report stock transactions of $1,000 or more made by themselves or their family members within 45 days. Members of Congress are also supposed to be limited by insider trading laws.