House Republicans have advanced a bill aimed at curbing congressional stock trading, but without any support from Democrats. The legislation, spearheaded by Rep. Bryan Steil (R-WI), cleared the House Administration Committee this week and now heads to the House floor for a vote.
The “Stop Insider Trading Act” would prohibit members of Congress from purchasing individual stocks while in office and would require them to give advance notice — between 7 and 14 days — before selling any securities. Lawmakers could still invest in index funds, mutual funds, and reinvest dividends from previously held assets.
Democrats on the committee pushed back, arguing the bill doesn’t go far enough. Several proposed amendments would have required lawmakers, and even the President and Vice President, to fully divest from all individual investments before taking office — but Republicans voted those amendments down.
Rep. Julie Johnson (D-TX) introduced one such amendment, which would have mandated full divestment without protecting lawmakers from capital gains taxes. Steil warned that such a policy could drive qualified private-sector leaders away from public service.
“For some people, that may be a very significant financial impact,” Steil said. “We’re not trying to make elected officials poor — we’re trying to prevent insider trading.”
Steil’s position echoes concerns raised by business leaders like Chris Josephs, co-founder of the trading app Autopilot, who told The Daily Wire that full divestment would “demotivate” successful professionals from entering politics.
Josephs argued the 2024 election could have looked very different if full divestment were in place. “Trump and Vance wouldn’t have been allowed to run unless they sold their stuff, which I doubt they would have,” he said.
Democrats also attempted to ban dividend reinvestments, with Rep. Norma Torres (D-CA) arguing they should be off-limits. Republicans rejected that as well, with Steil explaining that dividends don’t present the same insider trading risks.
“Dividends are structured in advance and outside the control of any member,” he said. “They do not carry the same risk.”
Despite calls for stricter rules, Republicans stood firm that the goal is to prevent abuse — not punish wealth or success.
“The focus of this bill,” Steil concluded, “is to prohibit insider trading — not to make elected officials poor.”
The post House Republicans Advance “Stop Insider Trading Act” Without a Single Democrat Vote appeared first on Real News Now.
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