Scaramucci Pushes for Broader Insider Trading Ban in Washington
Scaramucci says the ethics rules in the CLARITY Act are too narrow and wants a broader ban on insider trading in Washington. The debate also touches on crypto oversight through the SEC and CFTC.
Key Takeaways
- Anthony Scaramucci says the ethics rules in the Clarity Act are too narrow and should also address insider trading more broadly.
- He points to the low pay for members of Congress and cites Singapore as an example of higher compensation with stricter ethics enforcement.
- Scaramucci points to trading results tied to Nancy Pelosi and the STOCK Act in the debate over conflicts of interest in Washington.
Anthony Scaramucci says the new ethics provisions in the Clarity Act do not go far enough. The SkyBridge Capital founder supports the ban on federal officials sponsoring crypto, but argues that the same logic should extend to insider trading more broadly.
Focus on Washington
Scaramucci said on CNBC that the root of the problem, in his view, is how little members of Congress are paid. He noted that they earn $180,000 (€157,800) a year and said that level of pay can encourage some lawmakers to trade on information they get through their jobs. As a contrast, he pointed to Singapore, where senior officials are paid far more but face tougher ethics enforcement.
His comments plug into a much broader fight over conflicts of interest in Washington. The CLARITY Act is designed to spell out the roles of the SEC and the CFTC in crypto oversight, but Scaramucci says the ethics exceptions are still too narrow. He has described an earlier version of the bill as a compromise that does not go far enough. The issue has also surfaced in the Senate, where Democrats Block Crypto Clarity Act Over Ethics Clause slowed talks on the bill.
Pelosi and the STOCK Act
Scaramucci also brought up the trading record of former House Speaker Nancy Pelosi, whose portfolio is managed by her husband Paul Pelosi. According to public trading data, that portfolio beat both the S&P 500 and Warren Buffett's Berkshire Hathaway for years. The 2024 filing showed a gain of 70.9%, compared with 24.9% for the index.
That debate goes back to the STOCK Act, which was passed in 2012 to prevent members of Congress from trading on nonpublic information. But a year later, Congress used a procedural maneuver to remove the requirement for a searchable online database of staff transactions, and no recorded vote was taken. Treasury Secretary Scott Bessent has since called for tighter restrictions on stock trading by members of Congress.
Why This Matters
For European crypto readers, the bigger takeaway is that the U.S. debate over crypto rules is increasingly tied to broader questions about political ethics. The CLARITY Act is not only about digital asset oversight, but also about where Washington draws the line on exceptions and conflicts of interest. That could shape how future U.S. rules on crypto and public office are written.
