In an effort to promote faith in their government, bipartisan legislators of the United States House of Representatives have recently proposed a new bill banning members from trading or owning certain financial instruments, including digital assets such as cryptocurrencies. The Bipartisan Restoring Faith in Government Act, which was introduced by Democratic Representatives Alexandria Ocasio-Cortez and Raja Krishnamoorthi, as well as Republican Representatives Brian Fitzpatrick and Matt Gaetz, aims at amending the existing laws that apply to Congress members. According to its terms, if the bill passes, all members of Congress and their families must liquidate any such assets or place them in a blind trust within 90 days.

The legislators argued that individual stock trading weakens public trust in the government, and thus must be denied to anyone with access to private and confidential information. Despite their efforts, questions have been raised regarding the adequacy of the potential fines and other restrictions. For example, AOC mentioned that she personally avoided all investments related to potential conflicts of interest — not just stocks but also cryptocurrencies — although not having a legal framework to enforce it.

The problem is then twofold. First, the penalties appearing in the STOCK Act were considered insufficient to ensure that lawmakers do not unduly profit from being in Congress. Second, the same law does not make any distinction between stocks and digital assets, instead referring to them both as ‘securities’. Similarly, the Bipartisan bill does not draw this line in clear terms either.

While buying and trading stocks may not be illegal per se, it shows a certain lack of ethics which many believe should not See the Light. There is a need to reach a consensus regarding which investments should be completely banned in order to avoid potential cases of insider trading and holding people accountable for their financial behavior. In addition, the bill should be clear in terms of legal regulation of digital assets using current Financial Technology — if indeed digital assets are to be included in such a ban.

In any case, reaching a consensus on this issue would be beneficial for both officials and the public, as it could help cultivate confidence in the American legislature once again. Whether or not it will gain enough support from both sides of the aisle to become law remains to be seen.



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