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Congressional Stock Trading Ban Passes House

  //house-home.news-articles.net/content/2026/02/1 .. ongressional-stock-trading-ban-passes-house.html
  Published in House and Home on Wednesday, February 11th 2026 at 12:51 GMT by Daily Camera
      Locales: Washington, Colorado, UNITED STATES

Washington D.C. - February 11, 2026 - The sweeping "Congressional Accountability and Transparency Act of 2026," which prohibits members of Congress and their families from trading individual stocks, passed the House of Representatives last month with a decisive 357-68 vote. The bill, spearheaded by Representative Anya Sharma (D-CO) and Representative David Miller (R-TX), is now facing a potentially contentious journey through the Senate, with debates expected to intensify in the coming weeks. The House vote marks a significant shift in the ongoing effort to address long-standing concerns about conflicts of interest and the erosion of public trust in government.

The core of the legislation aims to eliminate the opportunity for lawmakers to exploit non-public information gained through their official duties for personal financial enrichment. For years, critics have argued that the existing regulations - which primarily focused on reporting requirements - were inadequate in preventing insider trading and maintaining the integrity of the legislative process. The current system allowed legal, though ethically questionable, stock trades as long as they were reported, creating a perception of impropriety even when no illegal activity occurred.

Representative Sharma, a vocal proponent of the bill, emphasized the urgent need for reform. "The American people are rightly skeptical of their institutions," she stated in a recent interview. "This bill isn't about punishing anyone; it's about preemptively addressing a clear vulnerability and demonstrating that we, as elected officials, are committed to serving the public interest above our own financial gains."

The bill's provisions are stringent. Members of Congress, their spouses, and dependent children are now prohibited from directly owning or trading individual stocks. Those currently holding such investments have a 90-day window to divest or transfer their holdings into qualified blind trusts - financial arrangements where a trustee manages the assets independently, shielding the lawmaker from day-to-day investment decisions. Non-compliance carries significant penalties, including substantial fines and the possibility of criminal prosecution.

The bipartisan support the bill received in the House was notable, particularly in an era of increasing political polarization. Representative Miller highlighted the broad consensus, stating, "While we may disagree on many issues, both Democrats and Republicans recognize the importance of maintaining the public's confidence in their elected officials. This bill represents a common-sense step towards achieving that goal."

However, the path forward in the Senate is far from guaranteed. Several senators have voiced concerns, focusing primarily on the practical implications of the ban, especially regarding existing retirement savings and the complexities of managing inherited wealth. Senator Evelyn Reed (R-KS) is leading a contingent arguing for amendments that would allow for broader exemptions, potentially including diversified mutual funds and exchange-traded funds.

"We need to be careful not to unduly punish lawmakers who have legitimately built up their retirement portfolios over decades of public service," Senator Reed explained. "A blanket ban could force them to liquidate assets at unfavorable times, resulting in significant financial losses. We need a solution that addresses the legitimate concerns about conflicts of interest without creating unintended consequences."

The debate has also expanded to include discussions about expanding the ban to include senior executive branch officials and Federal Reserve board members. Advocacy groups, such as the Campaign Legal Center, are actively lobbying for broader reforms, arguing that the issue extends beyond Congress and requires a systemic overhaul of ethics regulations throughout the federal government. Recent data, highlighted in a [ Public Opinion Poll Shows Strong Support for Stock Trading Ban ], reveals that over 80% of Americans support a complete ban on congressional stock trading, demonstrating the strong public desire for increased accountability. A [ Senate Committee to Review Congressional Ethics Practices ] is already underway, further suggesting the seriousness with which the issue is being approached.

Legal experts are also weighing in, with some suggesting that the bill may face legal challenges based on claims of due process or equal protection. The argument centers around whether the ban unduly restricts the financial freedom of lawmakers compared to other citizens. However, proponents maintain that the unique position of power held by members of Congress justifies the restrictions.

The coming weeks will be crucial as the Senate debates the bill and considers potential amendments. The outcome will have far-reaching implications for the ethical standards of public service and the public's perception of government integrity. The debate represents a pivotal moment in the ongoing effort to restore trust in democratic institutions and ensure that elected officials prioritize the interests of their constituents over their own financial well-being.