Issue One applauds advancement of a comprehensive stock trading ban in the Senate

In response to today’s Homeland Security and Governmental Affairs business meeting, which advanced text closely resembling the revised Ending Trading and Holdings In Congressional Stocks (ETHICS) Act, representatives from Issue One’s ReFormers Caucus issued the following statements:

Ambassador Tim Roemer (D-IN): “Today is a move in the right direction by Congress. We’ve continuously emphasized the erosion of trust in the institution as a result of the appearance of impropriety by our federal elected officials. The American people for years have called on Congress to regulate itself and demonstrate through actions their commitment to the integrity of the institution — banning congressional insider trading speaks to this shared goal and concern from Americans of all stripes.”

Congressman Charles Boustany (R-LA): “It’s time for Congress to do the morally right thing and pass this legislation. Congressional insider trading must become a wrong that should be corrected for the future and stability of our democracy. Thank you to Senator Josh Hawley and Democrats on the committee for their leadership — our country salutes you!”

Issue One’s Legislative Director Jamie Neikrie added:

“This comprehensive ban on stock trading in Congress is a strong mechanism that would ensure members are working on behalf of the people and not enriching their personal portfolios. We applaud Senator Hawley for putting politics aside and working to advance the legislation out of the committee. Senator Ossoff also deserves recognition for his continued leadership on this issue. Now, the Senate has the unique opportunity to pass legislation that finally puts a stop to congressional insider trading and restores the American people’s trust in their elected representatives.

“We commend today’s bipartisan efforts and hope Congress builds on them by passing legislation and sending it to President Trump — who has previously expressed support for such a ban — so that he can sign it into law.”

Background 

Last year, more than 40 members of the bipartisan ReFormers Caucus called on Senate leadership to pass the amended ETHICS Act. They did so after U.S. Senators Jeff Merkley (D-OR), Gary Peters (D-MI), Josh Hawley (R-MO), and Jon Ossoff (D-GA), finalized an agreement to advance the bipartisan ETHICS Act in July 2024 following months of negotiations. This was the first time a Senate committee marked up legislation barring stock trading activity by federal elected officials.

The modified legislation would immediately prohibit members of Congress from buying stocks and other covered investments, and ban members from selling stocks 90 days after its enactment. Furthermore, the prohibition applies to spouses and dependent children. The legislation also increases penalties for violations of the enacted Stop Trading on Congressional Knowledge (STOCK) Act disclosure requirements.