House Passes Bill to Curb Congressional Stock Trading
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- US House of Representatives passed the Stop Insider Trading Act in a 232-198 vote, sending it to the Senate with penalties including fines up to $2,000 or 10% of the transaction value and disgorgement of profits.
- Bryan Steil sponsored the bill, stating it ensures no lawmaker can profit from insider information and requires seven days’ notice before selling existing stock holdings to deter improper trades.
- Elizabeth Warren criticized the legislation, calling it ineffective because it allows lawmakers to keep and sell stocks, and predicted it 'won’t fly in the Senate.'
- Stop Insider Trading Act permits members of Congress, their spouses, and dependent children to retain current stock holdings, a major loophole opponents say undermines its intent.
- Bryan Steil also introduced the Stop Lawmakers from Predicting Act, aiming to bar public officials from betting on policy outcomes via platforms like Kalshi and Polymarket, with similar penalties.
Why it matters: Lawmakers face new restrictions on stock trades, but the exception allowing current holdings weakens enforcement. The $2,000 fine or 10% penalty applies only if rules are broken, meaning financial incentives to trade remain—undermining public trust in congressional ethics reform.
