Senate Bill to Ban Lawmaker Stock Trading Moves Step Forward

A Senate committee has advanced a bill seeking to prohibit members of Congress, along with the president and vice president, from purchasing stocks and other "covered investments," marking a key step toward restricting financial activities of elected officials [1]. The bill, formally known as the HONEST Act (Halting Ownership of Non-Ethical Securities and Trusts), received backing from all Democratic members and only one Republican—Sen. Josh Hawley of Missouri—highlighting the partisan divide in its support [2]. Hawley, who has previously sold his own trusts and assets to align with the bill’s principles, emphasized that lawmakers should prioritize their constituents over investment returns [3].

The legislation excludes Donald Trump from its immediate scope, as the restrictions will not apply to the president or vice president until they leave office [1]. This provision has sparked controversy, with Trump publicly criticizing Hawley, calling him a "pawn" of the Democrats and accusing him of playing into their political strategy [4]. Hawley’s decision to support the measure has drawn sharp criticism from some Republican colleagues, with Sen. Rick Scott arguing that the bill unfairly targets lawmakers who engage in legitimate business activities [3]. Scott highlighted the importance of diverse professional backgrounds in public service, stating, “We should cherish all of our different backgrounds.”

Despite the resistance, the bill has garnered some unexpected support within the GOP. Sen. Roger Marshall acknowledged the issue of insider trading, noting that it has been “abused up here,” while Sen. Bernie Moreno praised the measure, calling it “great” [3]. Senate Minority Leader Chuck Schumer also voiced strong support, reaffirming Democrats’ commitment to the initiative [1]. The bipartisan nature of the committee vote suggests that the bill has broad appeal in principle, even if its passage in the full Senate remains uncertain.

The bill now awaits a decision from Senate Majority Leader John Thune, who will determine whether it proceeds to a full Senate vote. If enacted, the HONEST Act would represent a major shift in the financial conduct of federal officials and reflect a growing emphasis on ethical governance [2]. While the bill targets traditional stock investments, it does not extend to cryptocurrencies, ensuring that digital asset markets remain unaffected by the new restrictions [1]. This exclusion aligns with previous legislative efforts that have not directly targeted crypto assets, preserving the current regulatory landscape for digital tokens like Bitcoin and Ethereum [4].

Sources:

[1] title: Senate bill to ban lawmaker stock trading moves step forward

https://www.cnn.com/2025/07/30/politics/senate-bill-stock-trade-ban

[2] title: Bill Barring Stock Trading for Congress Advances With Trump Carve-Out

https://www.nytimes.com/2025/07/30/us/politics/senate-stock-trading-bill-congress-trump-carveout.html

[3] title: Trump blasts Republican Sen. Hawley over stock trade ban

https://abcnews.go.com/Politics/hawley-spars-fellow-republicans-joins-democrats-pass-stock/story?id=124219842

[4] title: Congressional stock trading ban gets Senate panel's OK

https://www.politico.com/news/2025/07/30/senate-stock-trading-ban-pelosi-act-00484256