The House of Representatives on Wednesday approved legislation aimed at restricting stock trading by members of Congress and their immediate families, but the measure’s inclusion of a voter ID requirement divided lawmakers and is expected to face significant obstacles in the Senate.
The “Stop Insider Trading Act” passed by a vote of 232-198, with every Republican voting in favor and 13 Democrats joining them.
The Democrats who supported the legislation were Reps. Kathy Castor of Florida, Henry Cuellar of Texas, Don Davis of North Carolina, Jared Golden of Maine, Vicente Gonzalez of Texas, Josh Gottheimer of New Jersey, Marcy Kaptur of Ohio, Susie Lee of Nevada, Jared Moskowitz of Florida, Chris Pappas of New Hampshire, Marie Gluesenkamp Perez of Washington, Darren Soto of Florida, and Derek Tran of California.
Many Democrats opposed the legislation because it included a provision requiring voters to present photo identification before casting a ballot.
That addition has significantly reduced the bill’s prospects in the Senate, where most legislation must overcome the chamber’s 60-vote filibuster threshold.
Rep. Alexandria Ocasio-Cortez sharply criticized the measure, arguing that Republicans had combined two unrelated issues into a single bill.
“Republicans are trying to pull a trick this week. They say we are voting on an ‘insider trading’ bill, but have snuck in massive SAVE Act-style voter suppression measures to it,” Rep. Alexandria Ocasio-Cortez (D-NY) declared. “This is a GOP effort to sabotage national mail-in voting, disguised as a trading ban.”
“I’m voting NO.”
Despite the controversy, the legislation represents one of Congress’ most significant efforts to curb concerns about lawmakers profiting from stock transactions since passage of the STOCK Act in 2012.
If enacted, the bill would prohibit members of Congress, their spouses, and dependent children from purchasing individual publicly traded stocks while serving in office, with limited exceptions for certain investment funds.
The legislation would also require lawmakers and their immediate family members to provide between seven and 14 days’ advance notice before selling stocks. Those who violate the requirement could face financial penalties and ethics investigations.
Opponents, however, argue the proposal stops short of a true ban because lawmakers would still be permitted to sell stocks they already own.
Data compiled by Quiver Quantitative identifies several members of Congress whose households conducted the largest volume of stock trades during the past year, although exact totals are difficult to calculate because federal financial disclosures report transactions in broad value ranges.
Rep. Ro Khanna (D-Calif.) topped the list, with his household recording 4,772 trades totaling approximately $65.9 million. The investments spanned a wide range of industries, including technology, manufacturing, finance, and health care.
Khanna has insisted that he personally neither owns nor trades individual stocks.
“I do not own or trade stocks and have led the fight to ban stock trading,” Khanna claimed on social media last month.
“My household’s only investments are in a trust that my in-laws set up before marriage, managed independently by a third party trustee in full compliance with the Office of Government Ethics (OGE) and House Rules.”
Khanna also published a lengthy explanation of his family’s finances on Substack, writing that his “household’s compliance has been independently verified by the watchdogs who track congressional trading.”
Rep. Nancy Pelosi (D-Calif.) also remains closely associated with congressional stock trading because of investments made by her husband, Paul Pelosi.
According to Quiver Quantitative, Pelosi’s household completed approximately $52.5 million in stock transactions across 21 trades during the past year.
Responding to questions about the transactions, Pelosi spokesman Ian Krager said, “Speaker Pelosi does not own any stocks and has no knowledge or subsequent involvement in any transactions.”
Although Pelosi now supports restrictions on congressional stock trading, she previously defended the practice.
“We are a free market economy. They should be able to participate in that,” the former House speaker told a reporter five years ago when pressed on the fortune her husband has amassed trading stocks while she’s in office.
Retiring Rep. Michael McCaul (R-Texas), the former chairman of the House Foreign Affairs Committee, ranked among the largest traders, with his family’s accounts recording roughly $48 million in transactions across 980 trades.
McCaul’s office has previously said that his wife’s investments are independently managed.
His staff noted that his “wife has assets she solely owns, and a third-party manager” makes purchases “without her direction.”
Most of the family’s investments appear to be diversified among financial, technology, and health care companies.
Rep. Tony Wied (R-Wis.) reported approximately $25.9 million in transactions spread across 19 trades, much of it involving technology stocks.
Although Wied voted for the legislation, he argued that Congress should have adopted broader ethics reforms.
“I plan to support this symbolic gesture when it comes to a vote, but let’s be real — insider trading is already entirely illegal,” Wied told The Post.
“If my colleagues on both sides of the aisle were serious about solving the actual problem, we would have gone much further with this legislation and addressed the real issue plaguing the swamp: career politicians using their connections and insider knowledge to enrich themselves as lobbyists and federal contractors after leaving office.”
Rep. Gil Cisneros (D-Calif.) and his family reported approximately $12 million in transactions through 1,128 trades involving investments in technology, industrial, and health care companies.
Cisneros emphasized that professional advisers—not he or his wife—manage the family’s investments.
“My wife and I have always employed outside financial advisors who have a fiduciary responsibility to maintain a diverse portfolio,” Cisneros told The Post. “We do not manage the day-to-day trading of our investment portfolio, nor have we ever suggested a trade while serving in Congress or at the Department of Defense.”
He added that he has “always complied with all rules and regulations regarding stock trading and financial disclosures” and supports stronger ethics safeguards.
Quiver Quantitative also listed Rep. Chip Roy (R-Texas) among Congress’ most active traders, though Roy’s office has disputed that ranking, saying it resulted from an error in his financial disclosures.
The remainder of Quiver Quantitative’s top 10 list of lawmakers with the highest trading volume last year included Reps. Cleo Fields (D-La.), Lisa McClain (R-Mich.), Tim Moore (R-N.C.), Josh Gottheimer (D-N.J.), and Kevin Hern (R-Okla.).
Responding to questions about McClain’s transactions, House GOP Communications Director Joe Buccino said, “Chairwoman McClain’s investments are a matter of public record. They have been made in line with all House rules and applicable laws.”
{Matzav.com}