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In a significant policy shift, President Biden has expressed his backing for legislation that would prohibit members of Congress from engaging in stock trading activities while serving in office.
During an interview with Faiz Shakir, Bernie Sanders’ political adviser, for A More Perfect Union, Biden stated, “Nobody in the Congress should be able to make money in the stock market while they’re in the Congress.” He further emphasized, “I don’t know how you look your constituents in the eye and know because of the job they gave you, gave you an inside track to make more money,” adding, “I think we should be changing the law.”
JUST IN: President Joe Biden has just endorsed a ban on congressional stock trading.
“Nobody… should be able to make money in the stock market while they’re in the Congress.” pic.twitter.com/q9Q1Zu5mX5
— Ian Jaeger (@IanJaeger29) December 17, 2024
The timing of Biden’s announcement, coming just weeks before his term concludes, raises questions about its potential impact. This stance represents a departure from his previous reluctance to address the issue, particularly during debates surrounding former House Speaker Nancy Pelosi’s initial resistance to such restrictions.
Pelosi, whose husband Paul is a venture capitalist, had previously defended congressional stock trading. In December 2021, she asserted that there is a “free market” that members of Congress “should be able to participate in.” Her stance later evolved amid public criticism, leading her to advocate for strengthening existing regulations.
Recent scrutiny intensified after financial disclosures revealed Paul Pelosi’s substantial Visa stock transaction, occurring before the Justice Department’s antitrust lawsuit against the company. The relationship between Biden and Pelosi has reportedly deteriorated following her role in his decision to withdraw from the presidential race.
When serving as press secretary, Jen Psaki had indicated that Biden would defer to congressional leadership on establishing trading rules. While bipartisan support exists for trading restrictions, proposed legislation has yet to receive a vote.
Joe Biden just pushed for a ban on congressional stock trading
“Nobody should make money in the stock market while in the Congress"
Since we run the Pelosi Tracker & have $300M invested alongside Politicians' portfolios on Autopilot
Here's how absurd their trading has become🧵 pic.twitter.com/2gfvzn7V5X
— Chris Josephs (@Chrisjjosephs) December 18, 2024
Shakir commended Biden’s personal choice to avoid stock investments during his 36-year Senate tenure, focusing instead on his congressional salary. The issue has gained increased attention since the pandemic’s onset, when several lawmakers faced criticism for stock transactions following private briefings about COVID-19’s potential impact.
The present system, requiring disclosure of transactions exceeding $1,000, has proven ineffective, with lawmakers frequently missing deadlines or failing to report altogether. Government watchdogs continue to express concerns about potential conflicts of interest arising from legislators’ access to privileged information.
