(CNBC) US Congress members will be banned from trading stocks if a planned legislation, which has earned the support of House Speaker Nancy Pelosi, passes.
The House Administration Committee has already started drafting the rules after being greenlighted by Pelosi, with some Democratic leaders also supporting it.
The Senate is also considering several versions of the proposed stock trading ban, with Democratic Senator Elizabeth Warren and Republican Steve Daines leading the queue on those making the call.
It is still not clear the type of investments that will be prohibited and how incoming members and their families will comply with the new law.
The legislation, which is expected before the November midterm elections, is seen as a move to restore trust and faith in the House, with the general public calling for a ban on stock trading among the lawmakers.
The proposed prohibition is also said to reflect the 2012 STOCK Act, which aims to prevent conflicts of interest and insider trading in Congress. In 2020, 54 members of Congress were found in breach of the law.
It now remains to be seen how Pelosi and other supporters of the proposed law will ride the House dissent after Congressional members of either side initially rejected the idea of limiting them on the type of investments they can make.
SPY is up +1.02%.
