Senators Push to Ban Stock Trading by Congress Members

In a renewed effort, a group of bipartisan U.S. senators is advocating for legislation to prevent members of Congress from engaging in stock trading.

On July 9, 20 senators sent a letter to House Speaker Mike Johnson and Democratic Leader Hakeem Jeffries, urging them to amend the Stop Trading on Congressional Knowledge Act (STOCK Act) of 2012 to enforce a ban on such activities.

Senator Josh Hawley emphasized the importance of preventing lawmakers from profiting from privileged information not available to the general public. The senators pointed out that 97 lawmakers had engaged in stock trading influenced by their committee roles, often yielding returns significantly higher than the S&P 500 average.

An investigation revealed that between 2021 and 2023, one in seven members of Congress violated the STOCK Act. The proposed amendment seeks to prohibit sitting congress members from trading stocks within 90 days of the bill’s enactment and extends this restriction to the president, vice president, and lawmakers’ families by March 2027.

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The penalty for breaching these new regulations would be a fine equivalent to 10% of the traded asset’s value, a notable increase from the current $250 fine. The senators stressed that stricter measures are essential to deter unethical behavior and rebuild public trust in democratic institutions.

Alexander Stefanov