House Passes Bill to Limit Congressional Stock Trading Amidst Criticism

The U.S. House of Representatives has passed a bill aimed at restricting stock trading by members of Congress, though its scope and effectiveness are subjects of debate. The legislation, known as the Stop Insider Trading Act, was approved in a 232-198 vote, with some bipartisan support but also notable opposition.

“

This bill would, in fact, allow members of Congress to continue to own and trade individual stocks. The bill would let members of Congress keep every single share of stock they currently own. The bill would allow members to liquidate their holdings at any time, profiting off years of ballooning investment portfolios. There is no divestiture required under this bill, and crucially, the bill does nothing to rein in the unprecedented, absurd, and deeply offensive corruption currently taking place in the White House.

Introduced by Rep. Bryan Steil, the bill prohibits members of Congress, their spouses, and dependent children from purchasing publicly traded stocks. It also mandates that lawmakers publicly disclose any intended stock sale at least seven days in advance to the House clerk or Senate secretary. Violators face a penalty of $2,000 or 10% of the transaction's value, whichever is greater, along with the forfeiture of any profits gained from the sale.

Steil stated that the bill's purpose is to "ensure that lawmakers cannot use their position to profit off insider information they may garner while serving in Congress." However, many Democrats argue that the bill does not go far enough. They advocate for a complete ban on stock ownership and trading for members of Congress, and for these restrictions to extend to the president and administration officials.

“

This bill would, in fact, allow members of Congress to continue to own and trade individual stocks. The bill would let members of Congress keep every single share of stock they currently own. The bill would allow members to liquidate their holdings at any time, profiting off years of ballooning investment portfolios. There is no divestiture required under this bill, and crucially, the bill does nothing to rein in the unprecedented, absurd, and deeply offensive corruption currently taking place in the White House.

Rep. Joe Morelle criticized the bill, stating it "would, in fact, allow members of Congress to continue to own and trade individual stocks" and that "there is no divestiture required." Rep. Pramila Jayapal labeled the measure a "fake stock trading ban." Republicans combined the stock trading bill with an unrelated provision requiring photo identification for voters in federal elections, a move that complicated support among Democrats.

“

This bill would, in fact, allow members of Congress to continue to own and trade individual stocks. The bill would let members of Congress keep every single share of stock they currently own. The bill would allow members to liquidate their holdings at any time, profiting off years of ballooning investment portfolios. There is no divestiture required under this bill, and crucially, the bill does nothing to rein in the unprecedented, absurd, and deeply offensive corruption currently taking place in the White House.

Existing law, the STOCK Act, prohibits federal employees, including members of Congress, from using nonpublic information for financial benefit and requires disclosure of stock trades exceeding $1,000 within 45 days. However, critics argue this law has been insufficient in deterring potential conflicts of interest, and no member of Congress has ever been prosecuted under it.

“

This bill would, in fact, allow members of Congress to continue to own and trade individual stocks. The bill would let members of Congress keep every single share of stock they currently own. The bill would allow members to liquidate their holdings at any time, profiting off years of ballooning investment portfolios. There is no divestiture required under this bill, and crucially, the bill does nothing to rein in the unprecedented, absurd, and deeply offensive corruption currently taking place in the White House.