The US House of Representatives passed the Stop Insider Trading Act on Wednesday, July 22, securing a 232-198 vote in favor of the legislation. According to reports from Representative Bryan Steil's office, the Wisconsin Republican introduced the bill in January and has now urged senators to send it to President Donald Trump for his signature. The bill represents a significant step forward for ethics reform on Capitol Hill, as noted by Steil after its passage. This marked the first congressional stock trading ban bill to reach the House floor for a vote, though it differs from a separate bill that had significantly more bipartisan support, as reported by Politico.
Under the approved legislation, members of Congress, their spouses and dependent children would be prohibited from purchasing securities issued by publicly traded companies. As reported by Steil's office, the restriction applies to new purchases but allows lawmakers and their relatives to retain stocks already in their portfolios. The legislation covers members of Congress, their spouses and dependent children, with existing shares still able to be sold, provided the owner files a public notice at least seven days and no more than 14 days before the transaction, with filings submitted to the clerk of the House or the secretary of the Senate. Members would still be able to buy mutual funds, ETFs, index funds and commodities while in office, as noted by Politico.
The House narrowly passed the bill with nearly all Democrats voting against after Republicans added a federal voter ID requirement. According to reports, the added provision would require valid photo ID at the polls or within three days for provisional ballots, and a photocopy of ID for mail-in ballots in federal elections. This addition follows demands from President Trump, with the bill now tied to the broader SAVE America Act along with other key measures advanced before the scheduled recess. The Voter ID Act portion of the SAVE America Act was also attached to the stock trading ban legislation, unlike other bills on banning elected officials that did not include voter-ID provisions.
The bill establishes significant penalties for violations, combining financial charges with the loss of trading profits. According to the legislation, congressional ethics committees would impose either $2,000 or 10% of the covered investment's value, whichever amount is higher, while violators would also surrender any profit earned from a prohibited transaction. Steil has defended the advance-notice requirement as a deterrent against trades based on confidential information, noting that planned sales would become public before execution.
Senator Elizabeth Warren, a Massachusetts Democrat who has backed stricter limits on congressional trading, has rejected the House language due to significant loopholes. As reported by Warren on Thursday, she argued that the current version was "not gonna fly in the Senate" because it permits officials to keep and sell stocks they already own. Warren advocates for barring members of Congress from owning, buying or selling individual stocks rather than facing restrictions limited mainly to future purchases, representing a fundamental difference in approach between the two chambers. The bill now heads to the Senate where it could face bipartisan opposition over not being a full ban, not including President Trump and for adding the Voter ID Act. Rep. Joseph Morelle (D-N.Y.) criticized the legislation during debate, stating "Republicans have corrupted their so-called stock trading bill with a decaying piece of the SAVE American Act corpse."
