A former federal ethics official warns it would authorize “fake blind trusts in every branch of government.”
By Donald Shaw, Sludge
Democratic House leaders have unveiled the text of their bill to ban congressional stock trading. While the bill appears strong on many levels—it would force divestiture and it would apply not only to members of Congress but also their spouses and dependent children, among others—it contains language that could potentially open up a major new loophole.

Under the bill, which they are calling the Combatting Financial Conflicts of Interest in Government Act, members of Congress, senior legislative branch employees and other covered individuals would be barred from owning or trading any securities, futures, cryptocurrencies, or other covered assets. In order to comply with the law, they would have 180 days after the law is signed, or after joining Congress, to divest of these banned assets or place them in a blind trust.
The bill appears to mostly rely on the definition of “qualified blind trust” that has been in U.S. law since Congress passed the Ethics in Government Act of 1978. That law established the requirement for members of Congress to file financial disclosures, and it exempted assets held in blind trusts from needing to be disclosed. To qualify, blind trusts have to meet several conditions: the trustee and all of their employees must meet several criteria to be considered sufficiently independent, assets in the trust must not have restrictions with respect to their transfer or sale, the trustee must have sole control of the assets, and more.
Recent Posts
‘Unconstitutional. Unethical. Authoritarian.’ ICE Bars Millions Of Immigrants From Bond Hearings
July 18, 2025
Take Action Now One watchdog said the new policy “seems like a blatant attempt to stop them from exercising their right to due process.”……
Americans Are Not Nearly Alarmed Enough About Climate Change
July 18, 2025
Take Action Now Americans still don’t comprehend how imminent, dangerous, and far-reaching the threat is—and journalists are partly to blame.By…
The IRS Is Building A Vast System To Share Millions Of Taxpayers’ Data With ICE
July 17, 2025
Take Action Now ProPublica has obtained the blueprint for the Trump administration’s unprecedented plan to turn over IRS records to Homeland Security…
Israel’s Sudden Assault On Syria Is Unchecked Aggression
July 17, 2025
Take Action Now Jerusalem is bombing Damascus and threatening al-Sharaa’s rule, while Washington was hoping to help the nascent government on…