No Stock Act
Summary
The "No Stock Act" aims to prevent conflicts of interest by banning stock trading for senior government officials, their spouses, and dependent children. It prohibits holding, purchasing, or selling covered financial interests, including securities, futures, commodities, and cryptocurrencies. The bill also restricts covered individuals from serving as officers or board members of for-profit entities.
Expected Effects
If enacted, the bill would require covered individuals to divest existing holdings within 120 days of becoming covered or the enactment of the Act. It establishes enforcement mechanisms, including fines for non-compliance, and mandates public disclosure of extension requests related to divestiture. The Act amends Title 5 of the United States Code and other related acts to implement these changes.
Potential Benefits
- Reduces potential conflicts of interest among high-ranking government officials.
- Increases public trust in government integrity.
- Promotes impartiality in policy-making.
- Ensures officials focus on public service rather than personal financial gain.
- Enhances transparency through public disclosure of financial dealings.
Potential Disadvantages
- May deter qualified individuals from seeking public office due to financial restrictions.
- Could create difficulties in managing personal finances for covered individuals.
- May require complex divestiture processes, potentially incurring costs.
- Could be perceived as overly restrictive, impacting personal investment choices.
- Enforcement may pose administrative challenges.
Constitutional Alignment
The bill aligns with the general principles of ethical governance and preventing corruption, which are implicit in the Constitution's structure and purpose. While the Constitution does not explicitly address stock trading by government officials, this bill can be seen as an effort to uphold the integrity of public service, consistent with the oath of office required by Article VI. The necessary and proper clause (Article I, Section 8) could be invoked to justify Congress's authority to enact such legislation to ensure the proper functioning of government.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).