Bill to Ban Stock Trading by Officials Challenges the White House
Axios revealed that the bill introduced by Republican Senator Josh Hawley (Missouri) to ban stock trading by members of Congress, known as the Preventing Elected Leaders from Owning Securities and Investments (PELOSI Act), has become a major political controversy with the White House ahead of its vote in the congressional committee scheduled for Wednesday.
According to Axios, Hawley agreed to a significant amendment to the bill to include the President and Vice President among the officials prohibited from trading or holding individual stocks, in an effort to secure Democratic support.
This comes amid strong opposition from the committee chairman, Republican Senator Rand Paul (Kentucky), making Democratic votes crucial for passing the bill.
Axios reported that the White House legislative affairs office learned about this amendment at the last moment and immediately began exerting pressure to reconsider it.
A White House official told Axios: "This agreement was made at the last minute to include the executive branch without consulting us, raising potential concerns related to Article II of the U.S. Constitution," adding that "the reservations are not about the ban on members of Congress but about the part related to the executive branch."
Complex Legislative and Constitutional Background
The bill seeks to ban stock trading by individual members of Congress. However, the new formula under negotiation is based on a similar bill passed by the committee last year that required the President and Vice President to divest some investments.
According to Axios, an additional amendment will be introduced stating that the ban will take effect from the start of the next term for any member or elected official, rather than immediately.
Divisions Within the Republican Party
Rand Paul told Axios that he opposes the bill because it could "prevent figures like President Trump from running for president and adds a new obstacle for anyone considering election."
When asked why the vote session is scheduled despite his opposition, Paul hinted that he "sought to get two other bills he wants passed without burdening them with amendments," refusing to specify if this was a maneuver to derail Hawley’s bill.
Axios confirms that Hawley, who needs Democratic support to pass the committee, believes including the President and Vice President will give his bill greater political momentum, especially since former President Donald Trump had previously shown openness to supporting similar legislation.
White House Objections Are Not to the Ban Itself
Axios quotes White House sources confirming that the objections do not target the essence of the ban on Congress members but focus solely on the constitutional impact of extending it to the executive branch.
A senior official told the site: "Any delay is due to concerns related to Article II of the Constitution, not an objection to the legislative ban on Congress."
This debate arises amid growing popular demands for strict limits on stock trading by elected officials after a series of financial scandals raised questions about conflicts of interest.
However, including the President and Vice President in any ban is unprecedented and could open the door to long-term legal and constitutional battles.
“Punch Bowl News” was the first to reveal the White House objections before Axios confirmed them in its detailed report.
