A House committee voted to advance legislation that would prohibit members of Congress from buying individual stocks, setting up a broader floor fight over how far lawmakers should go to curb conflicts of interest.
By yourNEWS Media Newsroom
A House committee on Jan. 14 advanced legislation that would ban future stock trading by members of Congress, a move backed by House Republican leadership but criticized by Democrats as falling short of meaningful reform.
The House Administration Committee approved the measure by a 7–4 vote. The bill, titled the Stop Insider Trading Act, was introduced by Rep. Bryan Steil of Wisconsin and would prohibit members of Congress from purchasing individual stocks while allowing them to retain investments they already hold.
“The American people deserve to know their Member of Congress is not profiting off insider information,” Steil said in a statement. “The Stop Insider Trading Act ensures that cannot happen. This legislation is critical to restoring the public’s trust in their elected officials. If you want to trade stocks, go to Wall Street, not Capitol Hill.”
The bill has the support of House Speaker Mike Johnson of Louisiana, who said the measure represents a step toward rebuilding public confidence. “No member of Congress should be allowed to profit from insider information, and this legislation represents an important step in our efforts to restore the people’s faith and trust in Congress,” Johnson told The Wall Street Journal. “Both Republicans and Democrats will have an opportunity to make their voices heard and affirm their support.”
House Majority Leader Steve Scalise of Louisiana told the outlet he expects to move the bill to the House floor once it clears committee consideration. In a Jan. 12 post on X, Scalise said, “Members should NOT be able to profit from trading stock on insider information,” adding that Steil’s proposal “bans members from trading individual stocks” and that “the bill will be on the House floor soon,” calling it the accountability voters “demand and deserve,” according to his post.
Under the legislation, members who keep existing stocks would be required to file a public notice between seven and 14 days before any intended sale, according to a Jan. 12 press release from Steil’s office. Violations would trigger a penalty equal to $2,000 or 10 percent of the value of the covered investment, whichever is greater, along with forfeiture of any net gains from the sale. The restrictions would also apply to spouses and dependents of members of Congress.
Democrats on the committee argued the proposal does not adequately address conflicts of interest. Reps. Seth Magaziner of Rhode Island, Alexandria Ocasio-Cortez of New York, and Pramila Jayapal of Washington said in a joint Jan. 12 statement that while the bill bans new stock purchases, it “does nothing to remove the conflict of interest that arises from owning or selling existing stocks.”
“Members can still act on legislation, investigations, and briefings that directly influence the value of their stocks for personal benefit,”
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