Among the reasons Americans lack faith in their legislators is the impression that they play by a different set of rules than the rest of America. One key area is in their ability to use non-public information to invest in public companies. The practice of congressional trading has come under renewed scrutiny after several lawmakers from both parties traded stocks suspiciously timed with the start of the pandemic. And last week House Speaker Nancy Pelosi affirmed her view that lawmakers, and their spouses, should not be barred from trading stock. She said, “we are a free-market economy. They should be able to participate in that.” But, there are several ways in which lawmakers can participate in the stock market while avoiding potential or perceived conflicts of interest.
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