Résumé 

What’s happening: On January 13, House Republican leadership introduced the Stop Insider Trading Act, their proposal to address stock trading in Congress. 

Pourquoi c'est important: Currently, members of Congress can buy and sell stocks, even while they’re making laws that could affect those companies and industries. Lawmakers are supposed to report their trades to the public, but there’s no law stopping them from trading stocks altogether, even if it creates a conflict of interest. And the fine for breaking this rule is only $200, – a small price to pay when some trades make thousands or even millions of dollars. 

Americans across the political spectrum are demanding meaningful action on member stock trading. 86% of Americans want Congress to prohibit its members from trading stocks, including 88% of Democrats and 87% of Republicans. 

Notre position: Common Cause believes the Stop Insider Trading Act has several serious shortcomings that would prevent it from adequately addressing the problem of member stock trading in Congress.  

While the bill restricts members of Congress from buying new stocks, it would still allow members to continue owning and selling stock. As such, the bill will not actually stop insider trading.  

Common Cause instead urges action on the bipartisan Restore Trust in Congress Act, which would comprehensively prohibit all members of Congress, their spouses, dependent children, and their trustees from owning, buying or selling individual stocks, securities, commodities, or futures.