H.R. 4890: Ending Trading and Holdings in Congressional Stocks (ETHICS) Act

The "Ending Trading and Holdings in Congressional Stocks (ETHICS) Act" is designed to address potential conflicts of interest for Members of Congress by prohibiting them and their immediate families from trading or owning stocks. To manage any existing stock holdings, the legislation requires that these assets be placed into qualified blind trusts. This ensures that Members of Congress do not benefit financially from information or decisions that could affect stock prices, promoting transparency and integrity in governmental actions.

Key Provisions of the Bill

• Prohibition of Stock Trading: Members of Congress and their families are not allowed to engage in buying or selling stocks.
• Blind Trust Requirement: Any current stock holdings must be transferred into qualified blind trusts, which are managed independently without the Members' knowledge of specific investments.
• Conflict of Interest Prevention: The bill aims to eliminate situations where legislative decisions could be influenced by personal financial gain related to stock ownership.

Implementation

The bill specifies how the blind trusts should be structured and managed, ensuring that there are clear guidelines for compliance. This includes defining what qualifies as a blind trust and detailing how the assets will be handled to maintain member neutrality in financial dealings.

Enforcement

Provisions for monitoring compliance with the law are included, establishing mechanisms to ensure that Members of Congress adhere to the restrictions set forth. Penalties for violations may be outlined, although specifics about enforcement measures would need to be determined upon the bill's passage.

Public Disclosure

The act may also enhance public disclosure requirements regarding Congressional financial interests, allowing for greater transparency and accountability by making it easier for the public to see how members are complying with the law.

Relevant Companies

None found