The House of Representatives is set to vote on legislation that would impose significant restrictions on stock trading by members of Congress and their families. The "Stop Insider Trading Act," if passed, represents one of the most substantial efforts to regulate such activities since the STOCK Act of 2012. However, its path to becoming law is fraught with challenges, including partisan opposition and potential hurdles in the Senate.
The proposed bill would prohibit lawmakers, their spouses, and dependent children from purchasing individual stocks of publicly traded companies, with exceptions for certain investment funds. Additionally, it mandates that these individuals file notice 7 to 14 days in advance before selling stock. Violators would face penalties and ethics scrutiny.
Critics, however, argue that the bill does not constitute a complete ban on congressional stock trading, noting that lawmakers would still be permitted to sell their assets. The legislation has also become entangled with unrelated provisions, which some lawmakers contend are designed to suppress voting rights. "Republicans are trying to pull a trick this week. They say we are voting on an ‘insider trading’ bill, but have snuck in massive SAVE Act-style voter suppression measures to it," stated Rep. Alexandria Ocasio-Cortez (D-NY), calling it a "GOP effort to sabotage national mail-in voting, disguised as a trading ban." She declared she would vote against it.
Data from Quiver Quantitative highlights members of Congress whose households have been active in the stock market. Rep. Ro Khanna (D-Calif.) and his household reportedly traded the most frequently last year, with 4,772 transactions totaling $65.9 million. Khanna has stated that his household's investments are held in a trust managed by a third party, set up by his in-laws before their marriage, and that this arrangement complies with ethics regulations. He has also published explanations asserting his household's compliance has been independently verified.
Rep. Nancy Pelosi (D-Calif.), the former House Speaker, has also been associated with significant stock trading activity by her spouse. Her household recorded $52,525,000 in trades over the past year across 21 occasions. A spokesperson for Pelosi stated that she does not own stocks and has no involvement in any transactions. Pelosi has publicly supported efforts to restrict congressional stock trading since 2022.
Rep. Michael McCaul (R-Texas), the retiring former Chairman of the House Foreign Affairs Committee, saw his family move approximately $48 million across 980 trades. His office has previously indicated that his wife's assets are managed by a third-party without her direction.
Rep. Tony Wied (R-Wis.)'s household engaged in trades totaling around $25.9 million across 19 transactions, primarily in the tech sector. Wied has expressed support for the "Stop Insider Trading Act" but believes it does not go far enough, arguing for stricter measures against former lawmakers becoming lobbyists.
Rep. Gil Cisneros (D-Calif.) and his family were reported to have moved about $12 million through over 1,128 transactions, with investments in technology, health care, and industrial sectors. Cisneros affirmed that his family employs outside financial advisors and that he has always complied with trading and disclosure regulations.
Other lawmakers noted for significant trading activity include Rep. Chip Roy (R-Texas), whose office attributed reported trades to a disclosure error. The top 10 list for lawmakers with the largest trading volumes also includes Reps. Cleo Fields (D-La.), Lisa McClain (R-Mich.), Tim Moore (R-NC), Josh Gottheimer (D-NJ), and Kevin Hern (R-Okla.). House GOP communications director Joe Buccino stated that Chairwoman McClain's investments are public and made in compliance with House rules and laws.