In the upcoming session of Congress, US politicians may explore banning stock trading

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The 118th Congress may take up this issue after a change in leadership. Many US lawmakers from both parties of the aisle have at one point supported legislation that would forbid members from investing in stocks or cryptocurrencies.

Following the 2022 Midterm elections, Republicans will take control of the House of Representatives with a narrow majority beginning on Jan. 3, as the new session of the United States Congress convenes. Democrats will continue to hold a majority in the Senate. Republican congressman Kevin McCarthy, who is vying to become the next Speaker of the House, reportedly stated in January 2022 that, should his party gain control of the chamber, he would consider an outright ban on lawmakers owning and trading stocks. This measure would likely also apply to cryptocurrency.

At the time of publication, it is unknown if McCarthy has the support needed to take over as Speaker of the House, a process that will probably start on January 3. The fact that elected politicians are permitted to engage in business and hold

The Stop Trading on Congressional Knowledge Act, or STOCK Act, first passed in 2012, purportedly included disclosure rules that 77 legislators in the 117th Congress broke. Delayed reporting of permissible trades was one of these infractions, yet members were still allowed to vote on legislation that might have been influenced by their personal interests.

Major disputes in the cryptocurrency market in 2022 were largely centered on the financial connections between American lawmakers and business leaders. FTX executives, including former CEO Sam Bankman-Fried, donated to political causes and campaigns for both Republicans and Democrats. As a result, many in the industry questioned the objectivity of lawmakers during hearings intended to look into the collapse of the company.

The STOCK Act should be changed so that members of Congress, the Supreme Court, and their spouses and dependent children are prohibited from “trading stock or holding investments in securities, commodities, futures, cryptocurrency, and other similar investments,” according to Zoe Lofgren, chair of the Committee on House Administration. In 2022, the planned policy change remained unaltered, but the Federal Open Market Committee approved identical regulations prohibiting top Fed officials from acquiring and retaining cryptocurrency.

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