The stock trading performance of Nancy Pelosi, the former speaker of the U.S. House of Representatives, who is known as the 'Congressional Stock Goddess', may become an unbeatable history. Her party colleagues are seeking to introduce laws in conjunction with Republican lawmakers to ban Members of Congress from trading stocks.

Several Democratic and Republican senators jointly announced a new proposal on Wednesday, July 10th Eastern Time, called the 'ETHICS Act', which proposes to ban Members of Congress, their spouses, and minor children from trading individual stocks. Michigan Democratic Senator Gary Peters, who helped launch the proposal, is currently Chairman of the Senate Committee on Homeland Security and Governmental Affairs. He promised that his group will discuss the proposal in the Homeland Security and Governmental Affairs Committee later this month. According to media reports, the specific date of the review is July 24th.

The above proposal is the latest effort within Congress to restrict lawmakers from trading stocks through regulatory rules, and it is the first time a Senate committee has formally considered such proposals.

The current U.S. law requires Members of Congress to disclose the timing of their individual stock trades. However, critics believe that the implementation of relevant laws is inadequate and insufficient. The STOCK Act was enacted in 2012 to stop the use of insider trading by Members of Congress, requiring members of Congress and their spouses to disclose any transactions over $1,000 within 45 days.

Currently, insider trading laws also apply to Members of Congress, but after the 2009 financial crisis, there were calls to increase transparency in congressional investment. During the financial crisis, a few congressmen made huge profits by trading stocks of financial service companies before some large banks started to collapse. These trades have raised questions about whether those Members of Congress have used their information obtained from congressional committees to profit.

If the new proposal announced on Wednesday is passed, it will require lawmakers to immediately stop buying any new individual stocks, and begin peeling off any personal stock assets when the next congressional session begins in March 2027. The spouse and minor children of Members of Congress will also be prohibited from trading stocks. Beginning in 2027, the President of the United States, Vice President, and Members of Congress will all be required to divest their stock investments. The restriction in the proposal does not apply to Congressional staff.

The new proposal proposes fines equivalent to either their personal monthly salary or 10% of the value of each non-compliant asset, whichever is higher, will be imposed on lawmakers if they violate the above-mentioned asset divestment requirements.

Some commentators have said that since the Biden administration took office, Members of Congress have been engaged in a difficult battle to ban trading stocks. Several senators were exposed to have warned of the threat of the epidemic to the US economy by using the confidential briefings of the Congress to profit from trading at the beginning of the COVID-19 outbreak. The FBI has investigated insider trading by three Senators, but ultimately did not present any charges.

While serving as Speaker of the House, Pelosi regarded trading bans as misplaced efforts to prevent legislators from participating in the 'free market economy.' Her husband, Paul Pelosi, is a well-known investor and frequently engaged in profitable large-scale stock trading.

Last June, Pelosi accurately capitalized on the artificial intelligence (AI) wave and bought 0.01 million shares of NVIDIA. She also purchased call options with a strike price of $800.$NVIDIA (NVDA.US)$Analysts believe that if the stock price of NVIDIA continues to perform well in the second half of the year, even if the increase is only half of the first half of the year, the newly purchased 0.01 million shares by Pelosi will bring her about $1 million in profits, which is more than five times her annual salary. However, Pelosi's investment can be considered a failure, as she lost about $0.4 million and missed the recent continuous rise.$Broadcom (AVGO.US)$Call options. Analysis suggests that if nvidia's stock price continues to perform well in the second half of the year, even if the increase is only half of that in the first half of the year, Pelosi's newly purchased 0.01 million shares will bring her about $1 million in profits, which is more than five times her annual salary. However, Pelosi's$Tesla (TSLA.US)$capital assets by the above rules, lawmakers will be subject to fines equivalent to either their personal monthly salary or 10% of the value of each non-compliant asset, whichever is higher.

Editor/Somer