An uncommon coalition formed in the House on Wednesday as lawmakers from across the political spectrum united to support a bill that would prohibit members of Congress and their families from owning and trading individual stocks. The effort, which has gained renewed attention after previous attempts failed, is being promoted by representatives ranging from the far right to the progressive left.
“It’s not every day you see this cast of characters up here,” said Brian Fitzpatrick, a moderate Republican representing Pennsylvania. “You’re all smirking out there. That’s a good thing. It speaks to the power of this cause.”
Congress has debated for years whether lawmakers should be allowed to trade individual stocks due to concerns about conflicts of interest arising from access to sensitive information and decisions that can influence markets. Under current law, federal legislators must disclose stock sales and purchases through requirements established by The Stock Act, which was signed into law in 2012. Despite expectations that public disclosure would deter such activity, active trading among lawmakers has continued.
A Senate committee recently approved legislation introduced by Senator Josh Hawley (R-Mo.) that would extend the prohibition on stock trading to future presidents and vice presidents, though it would exempt former President Donald Trump. The House bill presented this week applies only to Congress but its sponsors indicated openness to including executive branch officials if sufficient support emerges.
The sponsors combined various earlier proposals into one bipartisan initiative. Representative Chip Roy (R-Texas), who leads the House effort, noted that some lawmakers have worked on versions of this idea for years and described recent months of collaboration with colleagues from both parties.
“I don’t agree with some of these people on anything,” said Rep. Tim Burchett (R-Tenn.), who is often aligned with the conservative House Freedom Caucus.
Progressive Representative Alexandria Ocasio-Cortez (D-N.Y.) joined Burchett at the podium and fist-bumped him before speaking. She remarked on the unusual nature of such broad cooperation: “It feels foreign and it feels alien and it’s like, what’s going on here?”
If enacted, the legislation would prevent lawmakers from owning individual stocks or bonds but allow investments in diversified mutual funds, ETFs, and certain commodities. Lawmakers currently holding prohibited assets would have 180 days to divest; new members would have 90 days upon taking office.
Although supporters celebrated at Wednesday’s event, passage in the Senate remains uncertain as at least 60 votes are needed for advancement and some senators remain skeptical.
Rep. Seth Magaziner (D-R.I.) acknowledged ongoing resistance: “Those of us who support banning stock trading in Congress are very vocal in our position, but that doesn’t mean that there aren’t opponents.”
Republican Sen. Ron Johnson (Wis.) described one version of the ban advanced by a Senate panel as “legislative demagoguery.”
