① As more and more "Capitol Hill stock market gurus" emerge, the debate over whether members of Congress should own stocks continues; ② Mike Johnson, the third most powerful figure in U.S. politics and Speaker of the House of Representatives, said on Wednesday that members of Congress should be able to own stocks, and that prohibiting them could discourage people from running for Congress.
In the United States, with the emergence of numerous "Capitol Hill stock market gurus," the debate over whether members of Congress should trade stocks continues. There is a significant divergence of opinion among US lawmakers regarding banning members from trading stocks.
Judging from the latest remarks of Mike Johnson, the third most powerful figure in American politics and Speaker of the House of Representatives, he does not seem to support banning members of Congress from trading stocks.
In an interview on Wednesday, local time, Johnson said that lawmakers should be able to hold stocks, and that prohibiting them could discourage people from running for Congress.
“You certainly don’t want to create obstacles for outstanding individuals who aspire to a political career,” he said.
Johnson stated that he opposes "people exploiting loopholes and abusing their power," but "perhaps a way can be found that both prevents such behavior and allows members of parliament to engage in legitimate transactions."
It is worth noting that Johnson's stance has shifted from before. Earlier this year, he expressed support for Congress to push forward with the stock trading ban.
“I agree with doing this because I don’t think we should give the impression of misconduct,” Johnson said at the time.
The reason why "Capitol Hill stock gurus" can reap returns far exceeding those of ordinary investors is mainly because they have access to a wealth of information that is difficult for ordinary investors to obtain due to their status as members of Congress. These advantages are key to their ability to accurately time investment trends.
Former Democratic Speaker of the House Nancy Pelosi is the most well-known "Capitol Hill stock guru." Her stocks, managed by her husband, saw their market value increase by nearly 71% in 2024, far exceeding the 27.1% increase in market value of Warren Buffett's Berkshire Hathaway in the same year.
Johnson made the remarks as Florida Republican Representative Anna Paulina Luna and Tennessee Republican Representative Tim Burchett were pushing for a vote on a bill that would prohibit members of Congress from trading stocks.
This bill, co-authored by members of both parties, requires incumbent members of Congress to sell their individual shares within 180 days of the bill's enactment, while newly elected members must complete the sale within 90 days.
The ban also applies to the spouses and dependent children of lawmakers. However, lawmakers and their families can still invest in widely held funds such as mutual funds and ETFs.
(Article source: CLS)
