Bipartisanship aims to end shadow trading in Congress

A bipartisan coalition in the U.S. House of Representatives has unveiled a bill seeking to prohibit members of Congress and their families from trading individual stocks, marking a significant escalation in the debate over legislative ethics and conflicts of interest. The proposed legislation, introduced on September 3, 2025, represents a rare moment of cooperation across ideological lines, with lawmakers from both major parties advocating for a measure that has drawn strong public support in recent polls [1]. The bill’s sponsors argue that current disclosure laws are insufficient to address concerns about the misuse of nonpublic information in trading decisions, and that the new proposal is necessary to restore public trust in government [2].

The legislation, titled the Restore Trust in Congress Act, would bar members of Congress, their spouses, dependent children, and trustees from owning, purchasing, or selling individual stocks, securities, commodities, and related financial instruments. Lawmakers failing to comply would face a fine equivalent to 10% of the value of the stock involved [2]. The bill also mandates that current lawmakers sell all individual stock holdings within 180 days of its enactment, while newly elected members must divest before taking office [1]. Enforcement mechanisms include strict compliance requirements and penalties for violations, ensuring that the law is not easily circumvented [2].

The bipartisan coalition behind the bill has included a diverse array of lawmakers, such as Reps. Chip Roy (R-TX), Seth Magaziner (D-RI), Pramila Jayapal (D-WA), and Alexandria Ocasio-Cortez (D-NY), among others. Rep. Brian Fitzpatrick (R-PA), a moderate Republican, has been a key figure in advancing the initiative, having previously introduced similar legislation with Democratic colleagues. Fitzpatrick emphasized that the effort is rooted in a shared commitment to transparency and accountability, with members of both parties recognizing the need for reform [1]. Ocasio-Cortez and Roy, representing opposing ends of the ideological spectrum, both spoke at the press conference announcing the bill, highlighting the unusual unity among the group [2].

The proposal has gained momentum amid growing public concern over potential conflicts of interest. Critics argue that lawmakers may use nonpublic information gained through their roles in Congress to make profitable trades, undermining the integrity of the legislative process. The current law, the STOCK Act of 2012, requires lawmakers to disclose trades over $1,000 within 30 days, but proponents of the new bill argue that disclosure is not enough to prevent unethical behavior [1]. The legislation has been endorsed by prominent figures, including House Speaker Mike Johnson, who does not hold any individual stock, and Treasury Secretary Scott Bessent, who has cited concerns about outsized returns by lawmakers [2].

The Senate has also seen some movement on the issue, with a key committee approving a bipartisan bill to ban stock trading by members of Congress. However, Senate Majority Leader John Thune has yet to commit to bringing the measure to the floor, and opposition remains significant. Some lawmakers have raised concerns that new financial restrictions could deter qualified individuals from seeking office, while others argue that existing disclosure laws are sufficient. Despite these challenges, sponsors of the House bill remain optimistic, citing widespread public support and the symbolic value of a bipartisan effort to reform a system that many view as in need of urgent change [1].

Source: [1] Left and right are joining forces to ban lawmakers from trading ... (https://finance.yahoo.com/news/left-joining-forces-ban-lawmakers-210908568.html) [2] A new House bill would ban lawmakers from trading stocks (https://www.npr.org/2025/09/03/nx-s1-5485340/congress-stock-trading-bill) [3] Fitzpatrick Leads Historic Bipartisan Effort to Ban ... (https://fitzpatrick.house.gov/2025/9/news-fitzpatrick-leads-historic-bipartisan-effort-to-ban-congressional-stock-trading)