Republican's proposal would ban Congress members and their spouses from trading individual stocks

Republican Rep. Pat Fallon of Texas is pushing legislation that would bar Congress members and their spouses from trading individual stocks.

According to a copy of the proposal posted by the Daily Caller, the text of the measure would prohibit lawmakers and their spouses buying and selling a "covered financial instrument," which the measure defines as a security "as defined in section 3(a) of the Securities Exchange Act of 1934."

The measure stipulates that certain vehicles such as mutual funds, exchange-traded funds, U.S. Treasury bills, bonds, and notes, and "any investment fund held in a Federal, State, or local government employee retirement plan" would not qualify as a "covered financial instrument."

The measure would allow for the spouse of a lawmaker to receive a "covered financial instrument" as payment for their work. "Beginning one year after the date on which a spouse of a Member of Congress is employed in the primary occupation of such spouse, such spouse may receive a covered financial instrument as compensation from such primary occupation during the period of employment at such occupation," the text of the measure reads.

Violators would be slapped with a fine of either "$25,000 per violation" or an amount equivalent to the value of the financial instrument that was sold or bought, whichever fine is larger.

"Undoubtedly some members seek to use their position to enrich themselves and their families. Still more make honest mistakes trying to navigate the often confusing reporting requirements. A cottage industry has sprung up in the media, often ignoring bad actors and instead excoriating innocent oversights for partisan reasons. To end all of this, we should simply pass legislation that, once and for all, makes it clear the sitting members of Congress are banned from trading individual stocks altogether," Fallon told the Daily Caller.

"The Insider Trading Prevention Act is a critical first step to restore the public's faith in Congress. This is clear, easy to understand and will eliminate altogether good faith errors and, more importantly, egregious self aggrandizement and insider trading," he noted, according to the outlet.

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