America’s frustration with congressional stock trading exploded after former House Speaker Nancy Pelosi’s (D-CA) trades were exposed by Autopilot investment app co-founder Chris Josephs. Five years later, lawmakers may finally be forced to respond.
On Monday, Rep. Bryan Steil (R-WI) introduced the “Stop Insider Trading Act,” delivering a sharp message to his colleagues. “If you want to trade stocks, you should go to Wall Street,” he said.
“We are very excited by this bill as we believe it is the most reasonable one proposed to date,” Josephs told The Daily Wire.
Steil’s bill would prohibit lawmakers from buying individual stocks during their tenure, though it would not force them to divest securities they owned before taking office. And while their buying power is limited to index funds, their selling power is left largely unrestricted. Lawmakers would be able to sell individual securities as long as they provided notice at least seven days before the trade.
The legislation does not put limits on other types of investments such as real estate, bonds, or commodities.
Josephs said the bill meaningfully tightens the rules. “Although it’s not perfect, it has stricter penalties and forces politicians to buy broader market index funds, which are much harder to insider trade on.”
The bill doesn’t just end with lawmakers; it puts the same restrictions on their spouses and dependent children. Previous efforts have drawn criticism for potentially limiting the careers of the children of the lawmakers. Addressing those concerns, the legislation limits coverage to minor children and adult children still claimed as dependents on a lawmaker’s tax return.
Rep. Anna Paulina Luna (R-FL) takes credit for getting this legislation to the floor.
“After years of insider trading, the discharge petition we brought forward and the members both Democrat and Republican who chose to put their names on it to stop the individual trading of stocks has finally worked,” the lawmaker said. “A bill is expected to be passed out of committee as early as this week that will prohibit members of Congress from buying individual stocks.”
Previously, Luna argued that half-measures are insufficient. “The only way to close the loophole is to ban congressional stock trading in its entirety.”
Along with Luna’s support, Steil says he has support from House GOP leadership, who have promised to give it a floor vote once the legislation is debated and amendments to the text are considered. Steil looks at the legislation as “an opportunity to regain America’s trust.”
However, the bill is not the only recent effort to attempt to “regain the country’s trust.” In 2020, several senators were accused of trading stocks after private COVID briefings, triggering bipartisan outrage. From 2021 to 2023, multiple bills were introduced, including mandatory blind trusts and outright trading bans, but none became law.
Any proposal would ultimately require lawmakers to vote to restrict their own trading, a hurdle Congress has repeatedly failed to clear. Josephs acknowledged the familiar pattern.
“We’ve seen this rodeo before though, so still lots to come on if it’ll actually pass, but it definitely is a step in the right direction.”
