Congressional stock trading, a controversial practice that has long raised ethics concerns, may soon face a federal ban as Democrats push bipartisan legislation aimed at preventing lawmakers from potentially profiting off insider information.
At a Glance
- Democrats led by Senators Jon Ossoff and Mark Kelly have reintroduced the Ban Congressional Stock Trading Act
- The bipartisan TRUST in Congress Act would require lawmakers, spouses, and dependent children to divest individual stocks or place them in blind trusts
- The legislation has garnered support from 44 Members of Congress from both parties
- Polling shows strong bipartisan public support for banning congressional stock trading
- Former President Trump has expressed willingness to sign such legislation if elected
Bipartisan Support Growing for Stock Trading Ban
A coalition of Democrats and Republicans is gaining momentum in their push to ban members of Congress from trading individual stocks. The TRUST in Congress Act, co-introduced by Representative Emanuel Cleaver (D-MO) and supported by 44 lawmakers from both parties, represents the latest effort to address what many Americans view as a clear conflict of interest. The legislation would prohibit members of Congress, their spouses, and dependent children from trading individual stocks while in office, requiring them to either divest their holdings or place them in qualified blind trusts.
The proposal maintains allowances for diversified mutual funds, exchange-traded funds, U.S. Treasury securities, and government retirement plans like 401(k)s. If enacted, current members would have 180 days to comply, while newly elected officials would face a 90-day deadline. This measure represents a significant step toward addressing concerns about potential insider trading and conflicts of interest that have plagued Congress for years and eroded public trust in government institutions.
Since coming to Congress, I have always believed that we need to pass a congressional stock trading ban. Members of Congress are elected to represent the American people, not profit from inside information. I was proud to join a bipartisan group of my colleagues in sending a… pic.twitter.com/1rbmctlE4l
— Congresswoman Jen Kiggans (@RepJenKiggans) July 20, 2024
Senate Democrats Take Lead on Similar Legislation
In the Senate, Democrats Jon Ossoff and Mark Kelly have reintroduced their own version called the Ban Congressional Stock Trading Act. Their bill similarly requires lawmakers and their immediate families to place stocks in blind trusts or divest them entirely. The senators argue that the measure is essential to rebuild public confidence in Congress at a time when trust in government institutions has reached historic lows. The legislation has gained co-sponsorship from several Democratic senators and enjoys broad support among voters across the political spectrum.
“Members of Congress should not be playing the stock market while we make Federal policy and have extraordinary access to confidential information,” said Sen. Jon Ossoff. “Stock trading by members of Congress massively erodes public confidence in Congress and creates a serious appearance of impropriety, which is why we should ban stock trading by members of Congress altogether.”
Senator Mark Kelly has been equally direct about the necessity of the ban. “This isn’t rocket science. The only way to stop insider trading in Congress is to stop members of Congress from trading stocks. Period. Fixing this would go a long way toward restoring trust—and fixing what’s broken in Washington,” Kelly stated. The straightforward approach has resonated with Americans who have witnessed numerous controversial stock transactions by legislators over the years.
More and more members of Congress agree: we should NOT be trading stocks while in office.
My bill to ban congressional stock trading is gaining traction, and the public is with us.
Let's turn momentum into action. pic.twitter.com/kRyrWaQYGw
— Congressman Seth Magaziner (@Rep_Magaziner) April 17, 2025
Crossing Party Lines
The stock trading ban has found rare bipartisan support in today’s polarized political climate. Republican Senator Josh Hawley has introduced his own similar legislation, the Preventing Elected Leaders from Owning Securities and Investments Act. Even former President Donald Trump has signaled willingness to sign such legislation if returned to office, potentially removing a major obstacle to its eventual passage. Former House Speaker Nancy Pelosi, who previously opposed similar measures, dropped her resistance in 2022 amid scrutiny over her husband’s stock transactions.
“Just as we prevent athletes from betting on games in which they can have a direct impact on the outcome or inside information about the team’s performance, it is common sense to ban lawmakers from investing in stocks,” explained Congressman Cleaver.
Public polling reinforces the broad appeal of the ban. A University of Maryland survey conducted in July 2023 found overwhelming support among Republicans, Democrats, and independents for restricting congressional stock trading. The legislation has also garnered endorsements from various government accountability organizations, including Public Citizen and the Project on Government Oversight, which have long advocated for stronger ethics rules for elected officials.
