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House Passes 'RESTRICT Act' to Curb Congressional Stock Trading

  //house-home.news-articles.net/content/2026/02/0 .. ict-act-to-curb-congressional-stock-trading.html
  Published in House and Home on Monday, February 9th 2026 at 18:34 GMT by Press-Telegram
      Locales: District of Columbia, Virginia, Maryland, UNITED STATES

Washington D.C. - February 9th, 2026 - In a move hailed as a victory for government transparency and ethical conduct, the House of Representatives passed the 'RESTRICT Act' (Restricting Executives from Trading on Non-Public Information) on Friday, February 6th, 2026. The bill, which aims to prohibit members of Congress and their immediate families from trading individual stocks, passed with a surprisingly robust bipartisan showing. Today, February 9th, 2026, the focus shifts to the Senate, where the bill faces potential hurdles but enjoys growing momentum.

The passage of the RESTRICT Act comes after years of mounting public outrage and investigative journalism exposing potentially improper stock transactions by lawmakers. For decades, critics have argued that members of Congress have an unfair advantage in the stock market, privy to non-public information that could be used to profit from investments - a clear conflict of interest. Recent investigations, notably those conducted by the non-partisan Campaign Legal Center and publicized by outlets like the New York Times and The Guardian, revealed instances where congressional trading patterns appeared to coincide with legislative decisions and briefings on upcoming economic reports. These reports acted as a catalyst, forcing the issue to the forefront of the political agenda.

While previous attempts to address this issue stalled in Congress, this iteration of the bill gained traction due to a confluence of factors. Increased media scrutiny, coupled with a growing demand for ethical reforms from advocacy groups like Common Cause and Citizens for Responsibility and Ethics in Washington (CREW), created significant public pressure. Furthermore, several moderate Republicans, sensing a growing public desire for accountability, broke with party lines to support the measure.

The RESTRICT Act, as passed by the House, outlines a comprehensive ban on stock trading by members of Congress, their spouses, and dependent children. This extends beyond simply prohibiting trading in individual company stocks. The bill targets the ownership of options, and futures contracts, significantly broadening the scope of prohibited activity. Crucially, the Act establishes an independent ethics enforcement body with the power to investigate potential violations and impose substantial penalties, including fines and even expulsion from Congress.

However, the bill isn't without its nuances. Recognizing that a complete prohibition could unduly burden some lawmakers, particularly those with long-held investments, certain exemptions are included. These exemptions, however, are carefully defined and subject to rigorous oversight. Specifically, the bill allows for investment in broadly diversified, publicly traded exchange-traded funds (ETFs) and standard retirement accounts, such as 401(k)s and IRAs. However, even these investments are subject to reporting requirements and restrictions on trading in sectors directly impacted by the lawmaker's committee assignments. For example, a member of the Agriculture Committee would face restrictions on ETFs heavily weighted towards agricultural companies.

The Senate is expected to begin debate on the RESTRICT Act next week. While proponents are optimistic, several Republican senators have voiced concerns about the bill's potential impact on their constituents' financial planning. Some argue that the legislation infringes on the rights of individuals to participate in the market and that existing insider trading laws are sufficient. Senator Amelia Harding (R-Texas) stated on Sunday, "While I believe in ethical governance, this bill goes too far and potentially creates an unnecessary burden on hardworking families. We need to strike a balance between transparency and personal financial freedom."

Despite these concerns, the bipartisan support demonstrated in the House suggests a strong likelihood of passage in the Senate. However, amendments are anticipated, potentially regarding the scope of the exemptions or the composition of the enforcement body. Lobbying efforts from both proponents and opponents of the bill are already underway, promising a contentious debate. If passed by the Senate, the RESTRICT Act would represent a watershed moment in the ongoing effort to restore public trust in government and ensure that elected officials are held to the highest ethical standards. Many experts believe the Act could set a precedent for similar legislation at the state level, further expanding the push for greater financial transparency among public servants.