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Congress·In Committee·9 months ago

Senate Bill Proposes Ban on Individual Stock Trading for Members of Congress and Their Families

Also known as: Ban Congressional Stock Trading Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • This bill requires Members of Congress, their spouses, and their dependent children to either sell their individual stocks and commodities or put them into a 'blind trust.' A blind trust is a setup where a professional manager makes all the investment decisions, and the owner is not allowed to know what is being bought or sold.
  • The rule applies to all current and future members of the House and Senate. Lawmakers would have 120 days after the law passes to comply. New members joining Congress later would also have 120 days from their start date to move their investments into a trust or sell them.
  • The goal of this policy is to prevent 'insider trading' and conflicts of interest. Because lawmakers often have access to private information about companies and the economy, these rules ensure they cannot use that information to make money for themselves or their families.
  • Lawmakers would still be allowed to own certain types of investments that are considered lower risk for conflicts. These include diversified mutual funds, exchange-traded funds (ETFs), and U.S. Treasury bonds, as these do not focus on a single company or industry.
  • If a lawmaker fails to follow these rules, they will face significant fines. The penalty for not complying is a monthly fine equal to one full month of the lawmaker's government salary for as long as they remain out of compliance.
  • To ensure honesty, government ethics offices would be required to post information online for the public to see. This includes copies of trust agreements and lists of assets that were put into the trusts, though the specific daily trades made by the manager would remain hidden from the lawmaker.
Economy FinanceCivil Rights

Milestones

2 milestones2 actions
May 22, 2025Senate

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

May 22, 2025

Introduced in Senate

Related News

6 articles
Axios·9 months ago

Senate Dems reintroduce stock trading ban for Congress

Sens. Jon Ossoff and Mark Kelly reintroduced the Ban Congressional Stock Trading Act, which requires lawmakers and their immediate families to use blind trusts or divest individual stocks. The move follows renewed momentum after high-profile endorsements and public support for ethics reform.

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Morningstar·6 days ago

Trump backs stock-trade ban for Congress during State of the Union. Here's where the effort stands.

In his State of the Union address, President Trump called for an end to insider trading among lawmakers, giving a boost to the Ban Congressional Stock Trading Act. While the measure has bipartisan support, it faces hurdles in both chambers due to disagreements over the scope of the ban.

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Washington Post·3 months ago

House Democrats roll out stock trading ban that includes Trump

House Democrats introduced a version of the stock trading ban that would extend requirements to the president and vice president. The proposal, led by Rep. Seth Magaziner, aims to force a vote via discharge petition but faces Republican opposition over the inclusion of the executive branch.

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Source Information

Document Type

Congressional Bill

Official Title

Ban Congressional Stock Trading Act

Bill NumberS 1879
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Homeland Security and Governmental Affairs.

Sponsor

Cosponsors

(15)
D: 15

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.