Lawmakers Renew Push to Ban Congressional Stock Trading

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Facts

  • US representatives Abigail Spanberger (D-Va.) and Chip Roy (R-Texas) have reintroduced the bipartisan "TRUST in Congress Act." It requires members of Congress, their spouses, and dependent children to place designated investment assets into a blind trust while the representative is serving in public office.
  • The so-called "Transparent Representation Upholding Service in Congress Act" was originally proposed in 2020. Democrat Spanberger has argued the bill would prevent insider trading and rebuild public confidence in elected officials.
  • Spanberger stated that voting on the matter was "long overdue," while also thanking Rep. Roy for his "continued partnership" in reducing conflicts of interest within the Capitol. The bill is endorsed by several organizations such as the Project on Government Oversight and the National Taxpayers Union.
  • A 2022 analysis by The New York Times found that nearly 20% of members of Congress were buying or selling stocks that could involve a conflict of interest. Roy stated that he and cosponsor Spanberger were willing to consider other options, claiming they wanted to "start this conversation."
  • The legislation currently has 35 sponsors from across the political spectrum, with more expected as the bill had over 70 backers in the previous Congress. The bill failed to make the floor under former House Speaker Nancy Pelosi, who cited funding bills as a higher priority.
  • A poll conducted just before the November midterm elections found that two-thirds of voters support a stock trading ban for public officials. Public officials like former speaker Pelosi have come under fire for their trading, prompting scrutiny from the public.

Sources: CNN, FOX News, Schiff, Finance, Gazette, and Morning Consult.

Narratives

  • Pro-establishment narrative, as provided by New York Times. The issue of how to prevent members of Congress from profiting from their positions in an improper manner has long existed. Lawmakers can obsess about money once they leave office. But while serving, they must stay focused purely on public interest and prove to their constituents that they are not self-serving.
  • Establishment-critical narrative, as provided by Pipe Dream. Given the continual violations of the previous so-called "Stock Act," it is unlikely that the TRUST in Congress Act would be effectively enforced. The current link between politicians and corporate interests is too strong, and for real change to occur, seismic changes in our political system must be made. Corporate greed has infected every ounce of our politics.