Bill to Stop Congress from Trading Stocks Aims to End Conflicts of Interest

A bill to stop Congress from trading stocks has been proposed, aiming to end conflicts of interest and promote transparency in government.

The bill would prohibit members of Congress, their spouses, and children from buying or selling individual stocks, including those in companies that have business before Congress.

This would help prevent lawmakers from profiting from their positions, which can create a conflict of interest and undermine public trust in government.

By banning individual stock trading, the bill aims to level the playing field and ensure that all Americans have equal access to information and opportunities.

If this caught your attention, see: Congress Trading Stocks

A bipartisan group of senators has announced a deal on a congressional stock trading ban, dubbed the ETHICS Act, which would bar lawmakers from buying stocks and other covered investments, and prevent members from selling stocks 90 days after the bill is enacted.

The bill, proposed by Senators Jon Ossoff, Gary Peters, Josh Hawley, and Jeff Merkley, would also require lawmakers, as well as the president and the vice president, to divest from all covered investments starting in 2027.

Members' spouses and dependent children would be banned from trading stocks starting in March 2027 under the proposed legislation.

The penalties for violations would be either the officials' monthly salaries or 10% of the value of the assets in violation of the law, whichever is greater.

Similar bipartisan efforts in the House have been led by Rep. Matt Rosendale, who believes that a stock trading ban is a "very big issue" that will gain more attention as the election approaches.

A proposal from Rep. Abigail Spanberger would require members to put their assets in qualified blind trusts for the duration of their term and a period after.

The STOCK Act of 2012 made it clear that members aren't allowed to buy or sell stock based on knowledge gleaned from their jobs, but violations are difficult to prove.

A proposal from Missouri Republican Sen. Josh Hawley and New York Democratic Sen. Kirsten Gillibrand would ban stock trading, ownership, and blind trusts for both legislative and senior executive branch officials.

The bicameral bill, dubbed the "STOCK Act 2.0", has been introduced by Senator Gillibrand, joined by Democratic Rep. Katie Porter of California.

Many of the bills introduced feature odd partnerships, with progressive Democrats like Pramila Jayapal teaming up with staunch conservatives like Rep. Matt Rosendale and Ken Buck.

Despite the broad support among voters, with 86% of voters favoring proposals preventing members of Congress from trading stock in individual companies, legislative attention has been devoted to other issues.

The bipartisan bill to ban members of Congress from trading individual stocks has made significant progress. It has passed a key Senate committee for the first time.

The ETHICS Act, introduced by Sens. Jeff Merkley, Josh Hawley, Jon Ossoff, and Gary Peters, would prohibit Congress members and their immediate family members from selling and buying stocks, commodities, or futures. If passed, violators of the law would be penalized in the amount of one month's salary or 10% of the value of the asset they had sold or purchased.

The law would ban selling and buying stocks 90 days after the bill becomes law, giving Congress members time to divest themselves of their holdings or place them in a qualified blind trust with a divestiture requirement.

More than 85% of Democrats and Republicans support the ETHICS Act, according to Merkley. This level of bipartisan support is a significant step towards passing the bill.

Here are the key penalties for violating the ETHICS Act: