After years of sidestepping the issue, Congress has finally made a significant move toward banning its lawmakers from trading stocks, a practice that has seen lawmakers accumulate millions through inside information.
This week, the Senate Committee on Homeland Security and Governmental Affairs advanced a groundbreaking bill with an 8-4 vote, pushing it to the Senate floor for full consideration.
If this bill passes, it would prohibit members of Congress, their spouses, dependents, and even the president and vice president from buying or owning stocks and other assets. This legislation would necessitate members liquidating their assets, a move some argue could significantly impact figures like Donald Trump and potentially dissuade him from running for office again. However, many Republicans see this as a crucial step to curb corruption and prevent figures like former Speaker Nancy Pelosi from reaping massive returns.
Missouri Senator Josh Hawley, the leading Republican on the bill, stated, “No Member of Congress should abuse their privilege to profit off of the American people. For too long, politicians of both parties have prioritized their stock portfolios over serving those who elected them. We must put an end to it. This landmark achievement is a strong first step in that direction.”
Hawley, at 41, is one of the youngest members of the Senate. He has teamed up with Georgia Democrat Senator Jon Ossoff, 37, who is spearheading the measure. “This is a historic moment in efforts to reform the ethics laws that govern Congress,” Ossoff said after the vote. “Georgians overwhelmingly agree that Members of Congress should not be playing the stock market while we legislate and have access to confidential and privileged information.”
The proposed law marks a significant shift from the current requirements, which only mandate members to disclose trades over $1,000 within 30 to 45 days. Critics have long argued that the STOCK Act, which bans trading on congressional knowledge, is insufficient, pointing out that the penalty for breaking the disclosure law—a meager $200 per infraction—is negligible compared to the potential profits.
Committee Chair Gary Peters, D-Mich., emphasized the need for change during the committee meeting. “Americans deserve to be confident that their federal elected officials are making decisions in the best interests of the public and not their own personal interest,” Peters said.
However, the bill has met some resistance. Four Republicans who voted against it argued that it could deter business owners from joining Congress, as it would require them to divest from their companies. Utah Senator Mitt Romney called the bill “a wolf in sheep’s clothing,” adding that it’s a “solution looking for a problem,” given that insider trading and trading on congressional knowledge are already illegal. “Have you thought about Donald Trump, for instance?” Romney asked during the hearing. “Under this bill, he couldn’t become president. He’d have to sell all of his Truth Social stock and private investments.”
Despite the opposition, Hawley insists that stock trading corruption is rampant in Congress. “Members of Congress are trading daily based on information that the public doesn’t have,” he said. “Congress is a rich man’s club.”
Hawley also pointed out that former Speaker Nancy Pelosi has consistently disclosed better returns than nearly anyone else. According to Quiver Quantitative, a congressional money tracker, Pelosi’s net worth has doubled from $123 million in 2014 to nearly $250 million in 2024. Most of these trades have been attributed to her husband, Paul Pelosi, who works in venture capital.
Critics argue that family members should also be banned from trading due to their access to congressional secrets. Pelosi’s 2024 disclosures include at least $3.93 million worth of securities, much of it in tech stocks like Palo Alto Networks and Forge Investments.
Quiver Quantitative co-founder Christopher Kardatzke told DailyMail.com, “According to our estimates, Nancy Pelosi has the sixth-highest trade volume in Congress over the last year. The volume is just crazy, often trades of millions of dollars of options or tens of millions of dollars of stock.”
Republicans have not been immune to these profits either. Romney’s net worth, for example, has increased from $178 million in 2017 to $245 million in 2024, according to Quiver Quantitative.
Voter support for a congressional stock trading ban is robust. A 2023 University of Maryland survey found that 86 percent of voters favor such a ban. Now, it is up to Senate Majority Leader Chuck Schumer, D-N.Y., to bring the bill before the entire chamber. This could be a defining moment for ethics reform in Congress, potentially restoring public trust in the legislative process.
