H.R.es491 - NO STOCK Resolution; No Option for Stock Trading and Ownership as a Check to Keep congress clean Resolution (119th Congress)
Summary
H.Res.491, also known as the "NO STOCK Resolution," aims to amend the Rules of the House of Representatives to prohibit Members of Congress from owning individual stocks. The resolution seeks to add a new clause to the Code of Official Conduct, preventing Members, Delegates, and Resident Commissioners from owning common stock in public corporations. This measure is intended to address concerns about potential conflicts of interest and enhance public trust in Congress.
Expected Effects
If enacted, this resolution would require Members of Congress to divest themselves of individual stocks or place them in a blind trust. It would likely reduce the potential for insider trading and conflicts of interest among members. The change would also likely impact the financial portfolios of members of congress.
Potential Benefits
- Reduced Conflicts of Interest: Prevents lawmakers from benefiting personally from information gained through their official duties.
- Increased Public Trust: Enhances confidence in the integrity of Congress by addressing concerns about insider trading.
- Fairer Markets: Reduces the potential for market manipulation based on non-public information.
- Improved Decision-Making: Encourages lawmakers to make decisions based on public interest rather than personal financial gain.
- Level Playing Field: Ensures that lawmakers are subject to the same investment rules as the general public.
Potential Disadvantages
- Potential for Reduced Investment Options: Limits the investment options available to Members of Congress.
- Difficulty in Enforcement: Requires strict monitoring and enforcement mechanisms to prevent circumvention.
- Possible Legal Challenges: Could face legal challenges based on property rights or equal protection grounds.
- Discourages Qualified Candidates: May deter individuals with significant investment portfolios from seeking public office.
- Unintended Consequences: Could lead to the use of loopholes or alternative investment strategies to circumvent the intent of the law.
Constitutional Alignment
While the Constitution does not explicitly address stock ownership by members of Congress, Article I, Section 6, addresses compensation and restrictions during their service. The proposed resolution could be seen as an extension of these restrictions to ensure the integrity of the legislative process. The amendment of House rules is generally within the purview of the House itself.
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).