Members of Congress are Trading Stocks – and It’s Legal
The idea that members of Congress can legally trade stocks while crafting policies that directly impact the market is a glaring conflict of interest. The practice not only erodes public trust but creates an uneven playing field for the average citizen.
It’s time to put an end to congressional stock trading, and the End Trading in Congressional Stocks (ETHICS) Act is a crucial step toward restoring integrity in government and tackling the appearance of corruption.
In recent years, reports of federal lawmakers profiting from insider knowledge have underscored how easily market manipulation can occur in the halls of Congress. While Americans grapple with economic uncertainties, some members of Congress have been accused of using their privileged positions to bolster their personal finances. Even with existing ethics laws, the opacity and lack of accountability in congressional trading continues to erode public confidence.
American politics are facing challenging times, from low trust in the federal government — particularly in the legislative branch and our elected representatives — to a rise in the potential for political violence. However, banning congressional stock trading is one issue where Americans have found common ground. According to recent polling, more than 80% of Democrats, Republicans, and independents agree that members of Congress should be prohibited from trading stocks.
The ETHICS Act offers a straightforward solution: a ban on stock trading for members of Congress and their immediate families. By barring those in power from participating in stock markets where they wield considerable influence, the act seeks to remove even the appearance of impropriety.
On July 24, before the Senate adjourned for its August recess, the Senate Committee on Homeland Security and Governmental Affairs voted in favor of the ETHICS Act, advancing it for consideration by the full Senate. This was followed by a letter from a bipartisan group of more than 40 former members of Congress who are part of Issue One’s ReFormers Caucus to Majority Leader Chuck Schumer (D-NY) and Minority Leader Mitch McConnell (R-KY), urging them to pass the bill.
Issue One has been calling for such changes for years. For instance, in 2022, we hosted a panel with the National Taxpayers Union and the Project On Government Oversight about why it’s time to ban stock trading by members of Congress, which featured Reps. Chip Roy (R-TX) and Abigail Spanberger (D-VA), as well as former House members Brian Baird (D-WA) and Zach Wamp (R-TN), who are both members of Issue One’s ReFormers Caucus.
Passing the ETHICS Act would signal a commitment to transparency and accountability, strengthening the bond between our institutions and the people they serve. At a time when faith in government is alarmingly low, prohibiting congressional stock trading is not just ethical, but essential. By outlawing this practice, we can take a meaningful milestone toward ensuring that Congress works for the American people.