Tag Archives: ban on congressional stock trading

This Should Have Been Done Ages Ago

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On Monday, Newsmax posted an article about a bill being introduced in the U.S. House of Representatives to ban stock trading by members of Congress.

The article reports:

House Administration Committee Chairman Bryan Steil, R-Wis., on Monday will introduce a bill banning lawmakers from buying individual stocks.

A post from the House Administration Committee on X confirmed the rollout of the “Stop Insider Trading Act,” saying “it’s time we banned lawmakers from trading stocks,” as Republicans move to answer a long-simmering public concern: that members of Congress can use privileged information to pad their portfolios.

According to The Wall Street Journal, Steil drafted the legislation with the backing of House GOP leadership and support spanning party factions, including Reps. Anna Paulina Luna, R-Fla., Chip Roy, R-Texas, and Mike Lawler, R-N.Y., as original co-sponsors.

The last time the House tried to do this, they called it the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act. Now that Nancy Pelosi is not running for re-election (she was one of the most successful stock traders the market has ever seen), they may be able to pass this.

The article concludes:

The Washington Times reported last month that House Republicans planned to vote early in 2026 on a congressional stock-trading ban after reaching a compromise under which the ban would apply only to lawmakers, not the president or vice president.

“I think we’re going to deliver a really strong product in 2026,” Roy told the outlet.

Roy declined to discuss specifics but said the legislation will include “a lot of elements” of his Restore Trust in Congress Act, which is co-sponsored by Rep. Seth Magaziner, D-R.I., and 118 others.

The push comes as bipartisan frustrations over congressional trading persist.

Lawmakers in both parties have explored stricter bans in recent years, driven by voter anger over conflicts of interest and weak enforcement.

It is way past time to pass this bill.

Somehow Congress Just Can’t Get This Legislation Passed

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On Sunday, The Daily Caller posted an article about Congress’ efforts to pass a law banning stock trades by members of Congress. There have been many examples of Congressmen using information based on their knowledge of pending legislation to make large sums of money on the stock market. (See articles here and here.) Somehow there seems to be no motivation to pass laws to ban that practice.

The Daily Caller reports:

  • Senate Democrats’ move to delay a bill banning members of Congress from trading stocks is “disappointing,” watchdogs that backed ban proposals told the Daily Caller News Foundation. 
  • Oregon Sen. Jeff Merkley made the stock ban delay revelation to Insider Thursday, telling the outlet lawmakers are prioritizing “other bills and judicial nominations.”
  • “In order to have a government that truly works for the people, voters need to trust that lawmakers have their best interests at heart,” said Joshua Graham Lynn, CEO of RepresentUs, a nonpartisan anti-corruption group. “But by continuing to allow themselves to benefit financially from their positions of power, members of Congress are condoning legalized corruption.”

The article notes:

There have been a handful of stock ban proposals, including the Ban Conflicted Trading Act, which Merkley sponsored in March 2021 and bars members and senior congressional staffers from buying or selling stocks. Democratic Georgia Sen. Jon Ossoff in January sponsored the Ban Congressional Stock Trading Act, which would require members and their families to divest their holdings within 120 days of the legislation being approved or place certain investments in a qualified blind trust.

Merkley’s announcement also comes on the heels of a New York Times report Tuesday detailing possible conflicts of interest among lawmakers who traded stocks between 2019 and 2021 while sitting on committees that may have given them key financial insight. The senator tweeted out the Times report Wednesday, claiming, “This is why I’ve been leading the charge in the Senate to ban congressional trading. We need to get it done.”

The article concludes:

“There is no excuse for any further delay on this legislation,” Dan Savickas, director of tech policy at Taxpayers Protection Alliance, a nonpartisan group focused on lowering federal spending, told the DCNF. “Congress has had ample to time to consider and pass this bill a number of times already.”

“Congressional leadership dragging its feet on this issue sadly reveals where their true priorities lie,” Savickas added.

Spokespeople for Merkley and Schumer did not respond to requests for comment. A Pelosi spokesman pointed the DCNF to her Wednesday presser remarks.

If they are not willing to stop trading their stocks, maybe they could just give all Americans a heads-up before they trade anything!