A bipartisan legislative effort to ban members of Congress and their households from trading stocks has gained support from unexpected allies, including President Trump and Nancy Pelosi. The legislation, cleared by a committee, aims to combat public corruption and restore trust in Congress, with bipartisan backing reflecting widespread public sentiment for such a ban.
The bill, which received broad bipartisan support, is seen as a means to root out public corruption and restore Americans’ confidence in Congress. As Treasury Secretary Scott Bessent noted, the credibility of the House and Senate is at stake when members trade individual stocks, highlighting the ‘eye-popping returns’ some members have earned, which would be envied by any hedge fund.
Support for the ban extends beyond traditional political lines, with figures like Rep. Alexandria Ocasio-Cortez and Sen. Ron Wyden joining conservatives such as Rep. Chip Roy and Sen. Josh Hawley in backing the measure. Both House Speaker Mike Johnson and House Minority Leader Hakeem Jeffries also support the ban, underscoring its cross-party appeal.
Notably, Nancy Pelosi’s support for the legislation comes despite her family’s history with stock trading, including her husband’s sale of Visa shares shortly before a civil antitrust suit against the company. This raised speculation about potential prior knowledge, adding context to the broader debate over congressional ethics and transparency.
The volume of stock trading by members of Congress has been significant, with over 9,400 trades reported last year by 12,000 members, generating returns exceeding 70% for some, far outperforming the S&P 500’s return in the same period. This has fueled concerns about the influence of such activities on public policy and the integrity of the financial system.
While it’s challenging to definitively link trading to policy influence, past incidents, such as former Rep. Chris Collins’ conviction for insider trading, remind lawmakers of the potential legal and ethical consequences of their actions. The growing distrust in government, as highlighted by recent Pew surveys, underscores the need for measures that enhance transparency and public confidence in the federal government.
Banning stock trading by members of Congress is seen as a step toward restoring trust in the federal government. Such a measure would not only address ethical concerns but also provide an opportunity for bipartisan collaboration in support of a national cause.