During the State of the Union address this Tuesday (24), the President of the United States, Donald Trump, asked Congress to approve the so-called “Stop Insider Trading Act”, a bill under discussion in the Chamber that prohibits parliamentarians, their spouses and dependent children from making new purchases of individual shares in the financial market while they are in office.
“As we ensure that all Americans can profit from a bull market, let us also ensure that members of Congress cannot corruptly profit from using inside information. Pass the Stop Insider Trading Act without delay,” Trump said in the speech. The proposal was presented in January by Republican Representative Bryan Steil, has already been approved in committee and is awaiting a vote in the Chamber plenary.
Trump’s speech touched on a controversy involving former Democratic Speaker of the House Nancy Pelosi, the Republican’s rival for his first term, and provoked a rare moment of applause among Democratic figures.
Democratic senator Elizabeth Warren, from the most progressive wing of the party, who, according to the American press, defends restrictions on financial negotiations by parliamentarians, stood up at the moment of the request to applaud the president. Other Democrats also showed occasional support for the measure.
Trump reacted ironically when he noticed the gesture coming from the opposite side of the floor. “They (Democrats) stood up for this – I don’t believe it. Did Nancy Pelosi stand up?” Then he added: “I doubt it.”
The controversy
Pelosi has been criticized by Republicans over her husband Paul Pelosi’s trades in the US stock market. Paul has been investing in the stock market for years and has already purchased several shares in large American companies, especially in the technology sector.
The controversy arose because some of these purchases occurred precisely before important votes or discussions in Congress that involved policies aimed at these sectors of the economy. In certain cases, after the approval of measures or announcements that favored areas such as technology and semiconductors, these shares increased in value.
According to critics, part of Paul’s shares are always sold after this appreciation, which resulted in significant profits for the Pelosi family. They accuse the former president of the Chamber of having used, directly or indirectly, privileged information obtained while in office to anticipate market movements and benefit her husband’s operations. Nancy Pelosi denies any wrongdoing. The Pelosis’ fortune is estimated at more than $200 million.
The former president of the Chamber was present at Trump’s speech. Pelosi announced last year that she will no longer run in US elections and will retire.
