The House of Representatives on Wednesday passed legislation aimed at banning members of Congress from trading individual stocks. The bill, officially titled the Stop Insider Trading Act, also mandates that voters provide photo identification to cast a ballot, a provision that has drawn criticism from some lawmakers.
The measure passed by a vote of 232-198, with thirteen Democrats joining all Republicans in support. Championed by House Administration Committee Chairman Bryan Steil, the bill would prohibit members of Congress, their spouses, and dependent children from acquiring new stocks. However, it would permit lawmakers to retain stocks they already own.
"This is the first congressional stock trading ban to receive a vote on the floor of the House," Steil stated on the floor. "If you want to day trade, there is a place for that on Wall Street."
Critics, including House Administration Committee ranking Democrat Joe Morelle, have labeled the bill a "sham," arguing that it does not go far enough because it allows members of Congress to continue owning and trading stocks. Rep. Teresa Leger Fernandez noted that the bill would not prevent sales of existing stock holdings and that individuals could still profit using information gained in Congress. She also pointed out that the ban does not extend to the executive branch, citing President Donald Trump's recent financial disclosure report which showed his investment advisers made over 21,000 trades on his behalf last year, many involving companies regulated by his administration.
Some Democrats also opposed the bill due to its combination with a voter ID provision. Rep. Alexandra Ocasio-Cortez called it a "bait-and-switch" bill, stating that the voter ID language was deliberately added to kill the stock trading ban and would undermine mail-in voting. Leger Fernandez described the combined legislation as a "Trojan Horse" for the SAVE America Act, a Republican-backed voting bill opposed by Democrats who argue it could disenfranchise voters.
The voter ID provision requires a valid photo ID for federal elections, with allowances for mail-in voters to submit photocopies and for eligible voters without ID to cast provisional ballots. Rep. Chip Roy, a Republican from Texas, expressed regret that the vote was made partisan by the inclusion of voter ID and suggested the legislation should apply to all three branches of government: Congress, the executive branch, and the judiciary.
The bill faces a challenging path in the Senate, particularly due to the voter ID language. Senate Majority Leader John Thune has previously indicated that Republicans do not have the necessary votes to overcome potential filibusters for such election-related legislation.