The House is preparing to vote on the “Stop Insider Trading Act,” a GOP-backed bill that aims to restrict congressional stock trading, though Democrats are vehemently opposing it. “This bill is a scam. It is not a congressional stock trading ban,” Democratic Rep. Alexandria Ocasio-Cortez of New York told Business Insider. “It is written precisely for the wealthiest members of Congress.” The bill, passed by the Committee on House Administration on Wednesday, would ban sitting members, their spouses, and dependent children from buying new stocks in publicly traded companies but allows them to hold onto existing holdings, sell them with seven days’ notice, and permits certain family members to trade on their behalf, a provision Democrats have criticized as a massive loophole.
Republican Rep. Bryan Steil of Wisconsin defended the legislation, saying, “The focus of the bill is not to make elected officials poor. The focus is to prevent them from benefiting off their insider information.” He described Democratic objections as a “Goldilocks argument,” suggesting the party wants perfection rather than passing a workable bill.
Democrats countered that the law lacks meaningful enforcement, with Rep. Julie Johnson calling it, “There’s no porridge in the bowl. It doesn’t have any real teeth. There’s not a meal to be had here.” Proposals to broaden the ban, add divestiture requirements, or replace the bill with a stronger Democratic-backed version were all rejected in committee, leaving the measure to advance without Democratic support.
The debate now appears likely to fracture along party lines, with some lawmakers exploring alternate routes to stronger restrictions. Democratic Rep. Joe Morelle said he plans to file a “discharge petition” to force a vote on a separate, more comprehensive bill, while at least one Democrat, Rep. Josh Riley, expressed willingness to support the GOP bill for making “meaningful progress.” GOP Rep. Chip Roy praised the bill as a significant step despite it not meeting all of his goals. The move highlights ongoing partisan tensions over congressional ethics, with the coming weeks likely to see intense debate over the final legislation.