House Republican leader Kevin McCarthy is considering some big changes if Republicans manage to take back the House. The California Republican is considering putting an end to lawmakers’ ability to hold and trade stocks, and therefore rake in millions. The possible rule change could be rippling to lawmakers like Nancy Pelosi, who has amassed millions from insider trading deals.
McCarthy’s reported position is in direct contrast to House Speaker Nancy Pelosi, D-Calif., who has said lawmakers should be permitted to participate in stock trading in a “free-market economy.”
On Monday Newsmax covered a report that Pelosi had raked in as much as $30 million from insider stock trades on Big Tech companies like Google — she oversees in Congress.
After decades of public service, Pelosi’s family has amassed a fortune estimated to be as high as $250 million.
McCarthy’s potential changes come as Insider’s Conflicted Congress project revealed 52 congressional lawmakers and 182 senior congressional staffers had violated the STOCK Act, an Obama-era law designed to clamp down on insider trading and protect against conflicts of interest.
The STOCK Act allows members of Congress to legally trade stocks based on insider information however, the lawmaker is required to disclose the trades publicly within 45 days.
Rep. Pelosi has defended the current rule based on the fact America is a free-market economy, and therefore lawmakers should be allowed to participate.
However, even some Democrat lawmakers have even proposed nixing the rule, including Georgia Sen. Jon Ossoff and New York Rep. Alexandria Ocasio-Cortez.