President Trump recently endorsed the Stop Insider Trading Act, saying Congress should not be able to profit from insider information.
He’s right about the problem.
But the bill he and his allies are pushing doesn’t actually stop Members of Congress from trading stocks. Instead of solving the problem, it leaves major loopholes in place.
Thankfully, there’s a better solution: the Restore Trust in Congress Act.
Why Congressional Stock Trading Is a Problem
Members of Congress have access to classified briefings, closed-door negotiations, and early information about legislation that can move markets. At the same time, many lawmakers buy and sell individual stocks in the very companies and industries they oversee.
When politicians can benefit personally from information the rest of us don’t have (or from laws they write themselves), it creates a serious conflict of interest and undermines public trust. It’s part of the reason why only 17% of Americans say they trust the government in Washington to do the right thing.
The President is right to point this out as a problem, but the bill that he and his allies are pushing hides the problem instead of solving it.
What is wrong with the Stop Insider Trading Act?
Despite its name, the Stop Insider Trading Act does not fully ban congressional stock trading.
Here’s what it fails to do:
❌ Does not ban stock ownership. Nearly half of Congress owns stocks and could keep them.
❌ Does not ban stock sales. Congress could still sell stocks while in possession of sensitive, nonpublic information, fueling continued insider trading concerns.
❌ Does not prevent conflicts of interest. Lawmakers could still write and vote on legislation that benefits companies they own
❌ Does not close loopholes. Members could still own crypto, private company stock, industry-specific funds, and other assets that create serious conflicts.
If we want to restore trust in Congress, we need legislation that truly removes financial conflicts of interest... and this bill doesn't do that.
A Stronger Alternative: The Restore Trust in Congress Act
The Restore Trust in Congress Act is a bill that is backed by both Democrat and Republican Members of Congress that would actually address the stock trading problem and help to restore trust in Congress.
The Restore Trust in Congress Act would:
✅ Ban Members of Congress, their spouses, and dependent children from trading individual stocks and their equivalents
✅ Require newly elected members to divest before being sworn in
✅ Impose a 10% penalty (based on stock value) for noncompliance
URGENT: Your voice matters. Send a letter to your representative
Members of Congress will do the right thing and pass a real ban on stock trading if they hear from enough of us. Pressure from constituents really does matter, especially in an election year.
Add your name below to send this message directly to your Members of Congress.