US senators from both parties are trying again to stop Congress members from trading stocks. A group of 20 senators wrote a letter on July 9 to House Speaker Mike Johnson and Democratic Leader Hakeem Jeffries.
They want an amendment to the Stop Trading on Congressional Knowledge Act (STOCK Act) of 2012 to prevent lawmakers from trading stocks.
In their letter, the senators wrote:
“As we head into the last few months of the 118th Congress, we believe that taking action on this common-sense, bipartisan legislation will ensure that members of Congress are serving the country and their constituents, not their bank accounts.”
The STOCK Act was meant to stop Congress members from using non-public information for personal stock trading. However, recent investigations show it hasn’t worked. One in seven Congress members broke the STOCK Act in the 117th Congress.
Source: US Congress
From 2019 to 2021, 97 members traded stocks in companies affected by their committee work. In 2022, Congress members outperformed the S&P 500 by 17.5%. The Senators added that:
“It is abundantly clear that more is needed to stop this type of behavior that is not only unethical but also undermines the public trust in our democratic institutions.”
They think that the current laws aren’t enough. They say these actions are unethical and hurt public trust in democratic institutions. They are pushing for a ban to restore trust.
The push for this legislation has strong public support. Recent polling shows 86% of Americans support banning Congress members and their families from trading stocks. This includes 87% of Republicans, 88% of Democrats, and 81% of Independents.
It’s been nearly two years since House leadership committed to holding a vote on a bill to reform stock trading practices for Members of Congress, said the senators.
Source: US Congress
The senators are ready to work with House leadership to pass this important legislation. They believe this action will show that Congress members are in Washington to serve their constituents, not their financial interests.
They ended the letter, saying, “We stand ready to work with you to advance this important legislative priority into law. Let’s get this done.”
The renewed push to ban stock trading for Congress members comes at a time when public approval ratings of Congress are very low. The senators believe that taking this action can help restore faith in democratic institutions.