Watchdogs Welcome House Introduction of Congressional Stock Trading Ban

Government watchdog groups on Wednesday cheered the bipartisan introduction of the Restore Trust in Congress Act, which would ban federal lawmakers, along with their spouses and children, from trading individual stocks.

"The legislation would require lawmakers to sell all individual stocks within 180 days," according to NPR. "Newly elected members of Congress would also have to divest of individual stock holdings before being sworn in. Members who fail to divest would face a fine equivalent to 10% of the value of the stock."

The bill's lead supporters in the House of Representatives span the full ideological spectrum: Reps. Tim Burchett (R-Tenn.), Brian Fitzpatrick (R-Pa.), Pramila Jayapal (D-Wash.), Anna Paulina Luna (R-Fla.), Seth Magaziner (D-Pa.), Alexandria Ocasio-Cortez (D-N.Y.), and Chip Roy (R-Texas).

"In a strong display of bipartisanship, leaders from both sides of the aisle in the House have worked together to produce a comprehensive and commonsense legislative measure to ban congressional stock trading," said Craig Holman, government affairs lobbyist with the group Public Citizen, which is endorsing the bill.

"These members worked for months in drafting a strong consensus bill that addresses all the key elements of an effective ban on congressional stock trading," he continued, welcoming that the prohibition applies to immediate family members and "covers a wide range of investments, including cryptocurrency, and is fortified with strong enforcement measures."

Brett Edkins, managing director of policy and political affairs at the progressive advocacy group Stand Up America, also applauded the bill, highlighting that "our representatives in Washington have access to an enormous amount of information about our economy that isn't available to the public."

"They should not be allowed to use what they learn in the course of their legislative duties to gain an unfair advantage and enrich themselves," he said. "It's time to ban sitting members of Congress from buying and selling stocks. Members of Congress cannot be trusted to police themselves, and existing ethics laws do not go far enough to prevent members from using their insider knowledge for personal gain."

Lawmakers behind this new proposal have long advocated for a full ban, arguing that existing protections—including those in the Stop Trading on Congressional Knowledge (STOCK) Act of 2012—are inadequate.

Advocacy groups, including the Campaign Legal Center, have also "been fighting for years to improve laws regulating the way members of Congress trade stocks," noted Kedric Payne, CLC's vice president, general counsel, and senior director for ethics.

"As long as sitting lawmakers are allowed to trade stocks connected to the industries they oversee, the public will question whether they are prioritizing their own personal profits over the public interest," Payne said. "We applaud this bipartisan legislation that incorporates the key provisions of stock act reform CLC has fought to advance—a ban on stock ownership that is enforceable and holds lawmakers accountable."

Jamie Neikrie, legislative director at the political reform group Issue One, pointed out Wednesday that "three years have passed since House leadership made a commitment to bring a congressional stock trading ban bill to the floor for a vote."

"It's time to get this much-needed reform across the finish line—no more excuses," Neikrie declared. "Members of Congress have a responsibility to hold themselves to the highest ethical standards, and passing the Restore Trust in Congress Act is how Congress shows it's serious about restoring trust and integrity in government."

"Today is a critical step for a more transparent and stronger institution," he added, urging "leadership in both chambers to seize this moment" and send the bill to President Donald Trump's desk.

Earlier this summer, Trump lashed out at Sen. Josh Hawley (R-Mo.), who worked with Democrats to advance out of committee a stock trading ban, claiming that "he is playing right into the dirty hands of the Democrats."

Hawley initially called his proposal the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act—a nod to former House Speaker Nancy Pelosi (D-Calif.), whose husband's stock trading has drawn scrutiny. After Hawley worked with Democrats on the bill, it was renamed the Halting Ownership and Non-Ethical Stock Transactions (HONEST) Act.

After the Senate Homeland Security and Governmental Affairs Committee's July vote, Pelosi said that "while I appreciate the creativity of my Republican colleagues in drafting legislative acronyms, I welcome any serious effort to raise ethical standards in public service. The HONEST Act, as amended, rightly applies its stock trading ban not only to Members of Congress, but now to the president and vice president as well. I strongly support this legislation and look forward to voting for it on the floor of the House."

Meanwhile, Fox News' Jesse Watters at the time asked Hawley about Trump lashing out at him. The Senate Republican responded, "I had a good chat with the president earlier this evening, and he reiterated to me he wants to see a ban on stock trading by people like Nancy Pelosi and members of Congress, which is what we passed today."