US Senators Reach Bipartisan Deal to Ban Lawmakers from Stock Trading

US Senators have struck a bipartisan agreement to ban all members of Congress from stock trading while in office. Reached by 20 senators, the bipartisan deal also prohibits lawmakers' spouses and dependent children from stock trading.

Moreover, the ban forbids the president and vice presidents from buying and selling stocks while in office. The deal is part of a broader measure to prevent serving lawmakers from manipulating the stock market.

Senators Push for Ban on Congress Members from Stock Trading

A bipartisan group of 20 senators sent a letter to Mike Johnson, the House Speaker, and Hakeem Jeffries, the Democratic Leader, urging them to ban lawmakers from stock trading.

According to the letter, the bipartisan group proposed to amend the 2012 Stop Trading on Congressional Knowledge Act. Notably, the move is to halt all lawmakers from stock trading while in office.

The letter pushed for a vote on the legislation, highlighting the need for the ban to ensure that the lawmakers remain true to their service.

Further, the letter mentioned that the prohibition would allow the senators to concentrate on serving the country and the constituents, not their bank accounts."In a press conference on Wednesday, July 10, US Senator Josh Hawley spoke on the need to effect the ban.

He stated: Congress should not be here to make a buck. There is no reason why members of Congress ought to be profiting off of the information that only they get, and the rest of the American people don't get.

Senators Outperform Major Stock by Violating the STOCK Act

Additionally, the bipartisan group noted that most senators used their positions to trade stocks and accumulate money. It discovered that up to 97 Congress members had traded stocks using a direct impact of the committees they oversaw. On average, some Congress members outperformed the S&P 500 by almost 17.5%.

Also, the group highlighted a recent investigation that showed the intense involvement of senators in stock trading. The probe noted one out of seven serving senators had violated the STOCK Act between 2021 and 2023.

One of the prominent cases that attracted public attention involved Senator Nancy Pelosi, who had multiple copy-trading and stock-picking services.

While the Congresswoman's annual salary hovers around $193,000, her trading activities amassed more than $255 million, according to QuiverQuant.

The proposed amendment of the STOCK Act would prohibit Congress members from trading stock after 90 days of implementation.

The ban also applies to the president, vice president, spouses, and dependent children of Congress members while in office.

Further, the bipartisan group proposed an amendment to the penalty for new laws. The new penalty demands 10% of the total value of traded assets, compared to the current penalty of $250 per violation.

The senators agreed that the penalty is necessary to stop unethical behavior that undermines the public trust in the country's democratic institutions.

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