Speaker Johnson Throws Support Behind Congressional Stock Trading Ban

• House Speaker Mike Johnson supports banning congressional stock trading to avoid impropriety, though he remains noncommittal on holding a House vote, as reported by YF.
• The TRUST in Congress Act, with 72 bipartisan co-sponsors, and the No Corruption in Government Act are key legislative efforts to curb insider trading and enhance transparency.
• President Trump has expressed willingness to sign a ban into law, but past efforts, including the 2012 STOCK Act, have faced challenges due to lack of enforcement and legislative hurdles.

Congressional stock trading has long been a contentious issue, with renewed efforts to curb the practice gaining traction on Capitol Hill. House Speaker Mike Johnson expressed support for banning lawmakers from trading stocks, citing the need to avoid any appearance of impropriety. “I’m in favor of it because I don’t think we should have any appearance of impropriety here,” Johnson told reporters on Wednesday, according to a report by YF. His comments mark a shift from his previously neutral stance, though he remained noncommittal on whether he would bring the issue to a House vote, stating, “We’ll see where it lands.”

The push to restrict congressional stock trading comes amid bipartisan support and public scrutiny, particularly as some lawmakers have faced criticism for trading during periods of market volatility. One prominent legislative proposal, the TRUST in Congress Act, seeks to mandate that lawmakers, their spouses, and children place certain assets into blind trusts. This bill has garnered significant backing, with 72 co-sponsors, including 60 Democrats and 12 Republicans. Despite its support, the TRUST in Congress Act has been reintroduced multiple times over the years without securing a vote, highlighting the challenges of enacting such reforms.

Another legislative effort, the No Corruption in Government Act, has emerged as a broader measure to address not only insider trading but also congressional lobbying. While Johnson did not endorse a specific bill, he acknowledged past abuses, noting, “On balance, my view is we probably should do that because I think it’s been abused in the past and I think sadly a few bad actors discolored it for everyone.” His remarks reflect a growing sentiment that reforms are necessary to restore public trust in Congress.

These efforts build on the 2012 STOCK Act, which explicitly prohibited insider trading by members of Congress and mandated trade disclosures. However, critics argue that the STOCK Act lacks teeth, as it does not impose penalties for noncompliance with reporting requirements. This gap has fueled calls for stronger measures to ensure accountability and transparency.
The movement to ban congressional stock trading has also received high-profile backing from President Trump, who has voiced his willingness to sign such a ban into law. In an interview with Time last month, Trump stated, “I would be okay with it. If they send that to me, I would do it.” His support adds political weight to the reform efforts, though the path to passage remains uncertain given Johnson’s cautious approach and the historical difficulty of advancing similar legislation.

The debate over congressional stock trading underscores broader concerns about ethics and conflicts of interest in government. Proponents argue that banning stock trading would eliminate the potential for lawmakers to profit from privileged information, while opponents, as Johnson noted, have expressed misgivings, likely citing personal financial autonomy or the complexity of implementing such restrictions. As bipartisan momentum grows, the coming months will be critical in determining whether Congress can overcome longstanding hurdles to enact meaningful reforms.

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